Selling a home, can I purchase a new truck with proceeds to avoid capital gains?

i don't see how a truck would be considered rental property.

 

No disrespect intended Cruising but do you really want to invest in something
that goes down in value? Might want to get a second opinion from a tax pro.

 

Depending on your tax bracket..probably your in 10 to 15 % bracket so your CG tax would be zero...Go find a new accountant please

 

Truck would have to be fully livable, bathroom, kitchen, but still doubt it, as there will be no address

 

I don't know that you would need to pay capital gains on something that was inherited. At one time we had an exemption on inheritance tax of $600,000. I don't see why you would need to pay capital gains on something that was inherited. You need to talk with a good CPA or tax attorney and ask them. But, even if you could buy a truck with the proceeds, I don't think it would be a good idea. I would look for another way to purchase your truck.

Rather than selling your inheritance, you might consider getting a home equity loan or line of credit using the real estate as collateral. You can usually get a home equity loan at a reduced interest rate and when the loan is paid off you will still own the real estate which will probably be worth more at that point than it is today. There might even be some tax advantages to getting a home equity loan on the real estate instead of selling it. You could also look into getting a business line of credit using the house as collateral. As long as the loan is for business purposes it should be deductible. Your truck will be free and clear and loans on real estate are normally lower than on equipment.

 

Honestly if I were in your shoes, I would invest in a property somewhere you like. Your situation is kinda like hearing about drivers mortgaging their home to buy a truck, it is way to risky for what money is left in trucking. That land will be there waiting for you and your spouse when you get done playing truck driver. If you just have your mind set on getting a truck with the money, I will give you a realtors number to buy the adjoining acreage beside mine in northen Florida, then you can sell it to me for a loss and take a 06 Pete off my hands for twenty bucks.

 

One other thing, if you decide to get a home equity loan or business line of credit, you could continue renting the property out and let the tenants pay for the line of credit with their rental payments. There could be a number of tax benefits to keeping the property and getting a line of credit rather than selling it.