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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Avoid CA's 3.3% advance withholding tax... Posted by Ward-CA- on October 22, 2003 at 1:06 AM In Reply to: How to keep more of my profit. posted by Sara_CA on October 20, 2003 at 7:19 AM : First of all, this is a great site and a great board. Thanks to Ward and all who posts here. I have learned a lot, and still a lot more to learn. Before I knew about the THT I bought a second home in my own name in April. After I have remodeled I encountered a financial downturn, and I need to pay back the family-borrowed down payment. My lowered income does not quality me for re-financing. So now I must sell. The short term profit will be $45K. I also will have a seasoning issue with the current lender. : : What is the best way to do the sell? : How will putting the tittle in a THT NOW still benefit me in the sell of the property? Or will it? : How to avoid California sales tax COMPLETELY, not just at the closing, but also next April? : Can I take part of the profit out, and leave the rest for another deal? A partial 1031 exchange? : Or, Can I use the profit against the stock market loss from 2 years ago? : Can you tell me where I can find the documents to acomplish each step? : Any and all help is always greatly appreciated. -=-=-=-=-=-=-=-=-=-=-= Sara, One thing you should really try to avoid is the advance payment of your CA income tax upon the close of escrow. The 3.3% tax is levied on the gross sales price of the property! You can be exempt from the tax if the property is in a multi-member entity registered with the state of CA. before you open escrow. An exempt entity would be a corporation, a limited partnership, a limited liability company, etc. Unfortunately the title holding trust is not exempt. Follow Ups: Re: Avoid CA's 3.3% advance withholding tax... Sara_CA 10:12 PM, 10/22/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : First of all, this is a great site and a great board. Thanks to Ward and all who posts here. I have learned a lot, and still a lot more to learn. Before I knew about the THT I bought a second home in my own name in April. After I have remodeled I encountered a financial downturn, and I need to pay back the family-borrowed down payment. My lowered income does not quality me for re-financing. So now I must sell. The short term profit will be $45K. I also will have a seasoning issue with the current lender. : : : : What is the best way to do the sell? : : How will putting the tittle in a THT NOW still benefit me in the sell of the property? Or will it? : : How to avoid California sales tax COMPLETELY, not just at the closing, but also next April? : : Can I take part of the profit out, and leave the rest for another deal? A partial 1031 exchange? : : Or, Can I use the profit against the stock market loss from 2 years ago? : : Can you tell me where I can find the documents to acomplish each step? : : Any and all help is always greatly appreciated. : -=-=-=-=-=-=-=-=-=-=-= : Sara, : One thing you should really try to avoid is the advance payment of your CA income tax upon the close of escrow. The 3.3% tax is levied on the gross sales price of the property! You can be exempt from the tax if the property is in a multi-member entity registered with the state of CA. before you open escrow. : An exempt entity would be a corporation, a limited partnership, a limited liability company, etc. Unfortunately the title holding trust is not exempt. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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