Cruisers Forum
 


Reply
 
Thread Tools Search this Thread Rate Thread Display Modes
Old 18-06-2020, 10:02   #1
Registered User

Join Date: Dec 2012
Location: Sunshine Coast, Australia
Boat: Hobie 33
Posts: 14
Capital gains

Anyone know of the chance of selling my property in a San Diego and transferring the equity to a boat as primary residence and thereby avoiding capital gains on the property?
iggybr is offline   Reply With Quote
Old 18-06-2020, 10:12   #2
Registered User

Join Date: Mar 2019
Posts: 766
Re: Capital gains

Quote:
Originally Posted by iggybr View Post
Anyone know of the chance of selling my property in a San Diego and transferring the equity to a boat as primary residence and thereby avoiding capital gains on the property?
Zero. The Tax Cut and Jobs Act restricted 1031 exchanges exclusively to real estate.
redneckrob is offline   Reply With Quote
Old 18-06-2020, 10:19   #3
Registered User

Join Date: Dec 2012
Location: Sunshine Coast, Australia
Boat: Hobie 33
Posts: 14
Re: Capital gains

Bad news but thanks
iggybr is offline   Reply With Quote
Old 18-06-2020, 10:31   #4
Registered User

Join Date: Aug 2010
Posts: 1,672
Re: Capital gains

Is there equity in the property? You can take out a Home Equity Loan or a Home Equity Line of Credit. Then pay off the boat loan. Then sell the property and pay off the Home Equity Loan/HELOC. There should be no penalty in that case.

I'm not sure how much time would need to pass or if there are consequences for closing the LOC or Loan within a certain time of opening it. If I recall, there were penalties for closing either within a certain number of months of opening them when I had one. (I've had both HE Loans and LOC's.).
Shrew is offline   Reply With Quote
Old 20-06-2020, 09:24   #5
Registered User
 
Orion Jim's Avatar

Join Date: Dec 2008
Location: Noank, Ct. USA
Boat: Cape Dory 31
Posts: 1,975
Images: 8
Re: Capital gains

When I want accurate financial advice I see my accountant or my tax lawyer. Free advice is worth what you pay for it......that goes double when you seek financial advice on a sailing forum.
Orion Jim is offline   Reply With Quote
Old 23-06-2020, 21:23   #6
Registered User

Join Date: Apr 2016
Posts: 10
Re: Capital gains

Quote:
Originally Posted by iggybr View Post
Anyone know of the chance of selling my property in a San Diego and transferring the equity to a boat as primary residence and thereby avoiding capital gains on the property?

If the home was your primary residence you can exempt 500,000 of the capital gains if married if you meet certain requirements. That should cover most of the sale for your average home in San Diego.



If it was a investment property you can make certain deductions and change the cost basis of the home based on things like improvements and repairs.



Talk with a CPA.



Like kind exchanges don't apply to a boat sadly as others have said.
billnb is offline   Reply With Quote
Old 24-06-2020, 00:42   #7
Registered User

Join Date: Jan 2016
Location: Huntington NY
Boat: Tartan 3000
Posts: 350
Re: Capital gains

Quote:
Originally Posted by Shrew View Post
Is there equity in the property? You can take out a Home Equity Loan or a Home Equity Line of Credit. Then pay off the boat loan. Then sell the property and pay off the Home Equity Loan/HELOC. There should be no penalty in that case.

I'm not sure how much time would need to pass or if there are consequences for closing the LOC or Loan within a certain time of opening it. If I recall, there were penalties for closing either within a certain number of months of opening them when I had one. (I've had both HE Loans and LOC's.).
Loans do not affect capital gains.
Larry Florida is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Capital gains tax iggybr Dollars & Cents 10 14-12-2017 05:35
Capital Gains Taxes ready4theworld Off Topic Forum 9 24-05-2011 02:09
Webb Chiles Gains a GANNET to Sail the Great Lakes PeregrineSea Great Lakes 0 10-05-2011 14:06
Annapolis - 'The Sailing Capital of the World?' PFFFTTTT!!! Chief Engineer Product or Service Reviews & Evaluations 31 18-04-2010 05:31

Advertise Here


All times are GMT -7. The time now is 02:24.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.