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6505854
Level 1

How can I minimize taxes for a one-time, income increase? I sold a property for $300k; my income is 90k/yr. How should this huge one-time gain be managed and reported?

I paid $55k for the property 38 years ago.
1 Best answer

Accepted Solutions
Critter-3
Level 15

How can I minimize taxes for a one-time, income increase? I sold a property for $300k; my income is 90k/yr. How should this huge one-time gain be managed and reported?

There is nothing to "manage" ... you had more taxable income than normal so you will pay more in taxes than usual.  If this was an investment property and it has not yet been sold then maybe a 1031 exchange may be a solution but if the property has already sold there is nothing you can do about this issue.

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5 Replies
Critter-3
Level 15

How can I minimize taxes for a one-time, income increase? I sold a property for $300k; my income is 90k/yr. How should this huge one-time gain be managed and reported?

There is nothing to "manage" ... you had more taxable income than normal so you will pay more in taxes than usual.  If this was an investment property and it has not yet been sold then maybe a 1031 exchange may be a solution but if the property has already sold there is nothing you can do about this issue.

Mike9241
Level 15

How can I minimize taxes for a one-time, income increase? I sold a property for $300k; my income is 90k/yr. How should this huge one-time gain be managed and reported?

if you hold securities that would result in a loss if sold, they can be sold to offset the capital gain. you have to be wary of the wash sale rule because if there is a reacquisition of the securities sold at a loss within 31 days before or after the sale the loss will be disallowed. we don't know your complete tax situation. a tax pro MAY be able to provide suggestions for reducing your tax bill. 

 

fanfare
Level 15

How can I minimize taxes for a one-time, income increase? I sold a property for $300k; my income is 90k/yr. How should this huge one-time gain be managed and reported?

"I sold a property "

 

 By this, we're assuming you mean property other than your personal residence.

 

@6505854 

rjs
Level 15
Level 15

How can I minimize taxes for a one-time, income increase? I sold a property for $300k; my income is 90k/yr. How should this huge one-time gain be managed and reported?

This is the second time you have posted the same question today. As you can see, you are not getting consistent answers because you have not provided enough details, so people are making assumptions that might or might not be correct. If you answer all the questions that I asked in your earlier post of the same question, you will get more useful answers.


Please do not post any more separate questions about the same sale. When information is scattered in multiple threads it's confusing and hard to follow, and hard to see the whole picture. Reply to this thread to supply more details.

 

6505854
Level 1

How can I minimize taxes for a one-time, income increase? I sold a property for $300k; my income is 90k/yr. How should this huge one-time gain be managed and reported?

Hello Critter, 

Thank you for the reply.  I suspected that this was the case. Just needed confirmation.  Thanks again.

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