InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Avoid CA's 3.3% advance withholding tax... Posted by Sara_CA on October 22, 2003 at 10:12 PM In Reply to: Avoid CA's 3.3% advance withholding tax... posted by Ward-CA- on October 22, 2003 at 1:06 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. Thank you, Ward. Unfortunately, I and my buyer just opened escrow with Old Republic Title. Is there any hope left? The price of this education is $15K. Fortunately only one time. Follow Ups: 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. : Thank you, Ward. Unfortunately, I and my buyer just opened escrow with Old Republic Title. Is there any hope left? The price of this education is $15K. Fortunately only one time. 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

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-2003, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455