Taxes and A Spec House

My husband and I, along with my father have purchased a piece of land and are in the process of having a general contractor (also my brother) build a house with the intent to sell. We are wondering what is the best plan for dealing with taxes after the sell of the house. The house should be ready to be sold in the spring of 2008. We are wondering if there is a tax advantage to having the home in my brother's name, since he is the general contractor? Or is there a benefit to forming a corporation and having the corporation own the home? What are your thoughts? The house is being built in Washington, where my father and brother live. My husband and I live in Oregon.

Share | Abuse

Answers

Awarded Answer (What’s This?)

Answer 1 / 1

Submitted 354 days ago...

primetime001

Expert (962)

You have probably already considered this but if your father moved into the home for 2 years you would be able to avoid capital gains tax.

Also, you might consider creating an LLC, which would own the home. That protects you from liability and is easy to setup, without a lot of paperwork involved.

Share | Link | Abuse

This Question was awarded 328 days ago therefore you can no longer post an Answer. However you may post a comment below.

Add A Comment

Related Questions

Real estate questions

My parents own land which once had a drive-in on it. a another person claims that he gave...

View Question

Property

If you have property with a house on it the house burns and you sell the house you have insurance...

View Question

Help!

My husband signed a contract with a real estate broker. the broker came to him with an investment...

View Question

Does title of business car affect ability to deduct car for taxes?

Does a car purchased for our sole-proprietorship need to be titled in the company name in...

View Question

What percentage is my capital gains tax on investment real estate owned in texas for 2 years

I want to sell my land in texas. part has been owned for 3 years and part has been held for...

View Question

Re: piece work

Is piece work pay allowed in california? meaning work taken home and paid for amount done....

View Question

Prperty is in ohio. i am resident of mn. husband is resident of tx. we have been separated for over 2 yrs-not legally.

My mother did not leave will so am signing quitclaim to house which my stepfather resides...

View Question

Steel cert

Does anyone have a spec for a-410-b steel?

View Question

House off my credit report

How can i get a house off of my credit report, in my divorce the house was awarded to my ex-husband...

View Question

How much rent per acea would it cost for unirrigated bottom land in yankton county, sd?

What kind of rent per acre can i expect from un-irrigated bottom land (they raise corn on...

View Question