Legal Question in Tax Law in California

I'm selling my house. Can i put the profit into a trust with out having to pay taxes. If not, is there some way to protect my profit? 401K etc.

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Asked on 7/25/14, 6:12 pm

1 Answer from Attorneys
William Christian Rodi Pollock

Is it your personal residence? See IRC section 121 for protections with limits. No, a trust won't help you unless you give the proceeds to someone else on an irrevocable basis before the sale. Then they pay the tax ( and keep the proceeds). Unless there are protections applicable like the personal residenc exclusion, pay your tax and be done with it.

If this is investment property, you may be able to reinvest the money in a deferred exchange or do a direct exchange under 1031 ( like kind exchanges)

See your accountant for more details.

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Answered on 7/26/14, 2:19 pm


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