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The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Trying to buy a retail business with Father In Law's money
 
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moana
Jun 18, 2005

one of the more intellectual satire communities on the web
 This is probably worth a call to a business-oriented CPA for both of your questions. I don't think he needs to be made a partner but you'd want an attorney to advise you on whether or not it's desirable and iron out a solid contract.

If your FIL is able to do a cash-out mortgage on his rental properties or main home, that would be a way to avoid the cap gain taxes on selling the places.

Also please please give us every single update on this if you decide to go through with it because it would be awesome whether you fail gloriously or manage to make it work!

* # ¿ Mar 5, 2022 04:09
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# ¿ May 21, 2024 16:17
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moana
Jun 18, 2005

one of the more intellectual satire communities on the web

Night Cat posted:

I was under the impression only a main residence was eligible for avoiding capital gains taxes, and figured if he sold his rental properties, he'd be subject to it. But a cash-out mortgage can avoid that? I should clarify: he owns these properties outright and has no mortgage on them. Would this still apply?
That's what I'm saying; if he can avoid selling them by just doing a cash out mortgage to get the cash, he won't have to pay cap gains tax. It may be hard to get a cash out mortgage if he is already retired but worth a looksie. A cash out mortgage would be basically taking out a loan using the properties as collateral, not selling the properties.

* # ¿ Mar 6, 2022 06:31
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The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Trying to buy a retail business with Father In Law's money