With the economy the way it is, many taxpayers are waiting for the price slide to stop and reverse itself before selling their homes. The waiting and hoping strategy does not work very well for taxpayers who bought a new home and now need to sell because the clock is running on their tax-free $250,000 home-sale-profit exclusion ($500,000 if married).

If you are one of those taxpayers trapped in the need-to-sell-now category, you are going to be extra glad you subscribe to Tax Reduction Letter. Why?

Keeping the Gain Tax-Free

Did you know that there is a tax strategy that allows you to sell your home to yourself and use the home-sale-profit exclusion? There is, and it’s very easy to implement.

Step 1. Form an S corporation. Keep this simple and inexpensive.

Two pockets. Now that you have your own personal S corporation, you have two tax pockets: your personal pocket and your S corporation pocket. Tax law treats your wholly-owned S corporation as ... Log in to view full article.