Pay people in property?

[fleabag]

If you receive money, it's taxable income and if it's like $400K then you'll be like in the highest tax bracket (or pretty close to it anyways). But what if you receive a piece of property that is worth $400K? I remember that if sell property that you pay capital gains which is at a much lower rate. So if you give someone a piece of property as a form of payment, how would that be taxed?

 

[spidey07]

Originally posted by: fleabag
If you receive money, it's taxable income and if it's like $400K then you'll be like in the highest tax bracket (or pretty close to it anyways). But what if you receive a piece of property that is worth $400K? I remember that if sell property that you pay capital gains which is at a much lower rate. So if you give someone a piece of property as a form of payment, how would that be taxed?

It is counted as income. The paying capital gains on property sales is on property you own and sell and realize gains on. Once it changes hands it's income/payment or subject to the "gift" tax. I'm not a CPA but where you are going the IRS is one step ahead of you.

Not to offend, but what a stupid question.

And to you point short term capital gains are taxed as regular income, which is NOT a lower rate. It's taxed as income.

 

[Farang]

YOU'VE DONE IT

 

[xSauronx]

Originally posted by: Farang
YOU'VE DONE IT

everyone does it we love to do it, i just did it and im ready to do it again