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I have 100 acres with a house (primary res). I want to divide the land into 10 acre lots. sell the house +10 as one lot, and sell the other 9 lots vacant. How do i avoid paying capital gains tax on the sale of those lots? what are some creative ways to do this?

jenkin7 · Posted: Mon Mar 08, 2010 11:47 pm Post subject:

Hi ck,

If you sell your primary residence you can earn a maximum profit of $250,000 (or $500,000 if married) without paying any capital gains tax. The lot you sell along with the home will be considered as your primary residence and you can claim exemption from the capital gains tax on this property. However, the rest of the 9 lots will not be considered as your primary residence and you will have to pay capital gains tax when you sell them. However, you can consult a tax advisor or an accountant to know if there are any ways in which you can avoid paying capital gains tax.

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How do i avoid capital gains on subdividing property?

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