Ways to minimize tax on sale of investment property

[PanAm]

What is the name of your state? Texas

I am in the process of acquiring land and will eventually be constructing multi-family dwellings in Texas. I need to know how to structure it so that i can pay the least amount of tax on the back end when it comes time to sell the completed structure(s). Would it be beneficial to set up a company and purchase the property in the company's name? Would such an acquisition through a living trust (Texas) be a viable solution? Would placing the company in the name of a foreign corporation domiciled in a low tax country help achieve this? I am really at a loss and would appreciate any help offered.

thanks in advance

 

[LdiJ]

What is the name of your state? Texas

I am in the process of acquiring land and will eventually be constructing multi-family dwellings in Texas. I need to know how to structure it so that i can pay the least amount of tax on the back end when it comes time to sell the completed structure(s). Would it be beneficial to set up a company and purchase the property in the company's name? Would such an acquisition through a living trust (Texas) be a viable solution? Would placing the company in the name of a foreign corporation domiciled in a low tax country help achieve this? I am really at a loss and would appreciate any help offered.

thanks in advance

Tax rates for trusts are much higher than for other entities. Trying to use a foreign corporation will not help you either.

The best way to do it is straightforwardly.

 

[tranquility]

Once you become a "developer" of real property, all kinds of duties and responsiblities may come due. If you are in the business of buying and selling property you will probably not get capital gain treatment on the sale of the property, but ordinary income. If you are talking about a serious investment, I suggest you see an attorney and an accountant to help you structure you entity. Since you will be dealing in property, extra-territorial organizations will not be helpful to you.