PUTTING PERSONAL RESIDENCE IN LAND TRUST

[mtnwizard]

Fire your attorney.  He doesn't understand land trusts.  Better yet, ask him to be specific, then post it here.  I'll be happy to point out his misconception. or I will be even happier to recommend one of several California attorneys who are experienced with land trusts.  Are you in Smogville or No. Cal?  You can also PM.

Da Wiz

[jagsterr]

Ok so you put your home in a land trust - did any one tell you that you lose your tax exemption which is $250,000.  Also if you put your apartment building into a land trust you lose your 1031 opportunity.
These are things they don't tell you at the seminars.   :o

[mtnwizard]

The reason they don't teach you that is that you are wrong.  

# TAX DEFERMENT - ; transfer is a "contingent sale," possibly deferring capital gain for years. 1031 Like Kind Tax Deferred Exchange privileges can remain intact.
# ASSET PROTECTION - The Trust may shield against tax-liens and creditor judgments.

An investor friend of mine said:  "I've done a few 1031 Exchanges in Oregon and California involving NARS trusts. The first accommodator I contacted told me that trusts were illegal in Oregon. Needless to say, I looked for and found another accommodator. "

I suggest that you contact Carl Tully at Heritage Group 1 (800-767-1031), an IRS qualified 1031 Exchange intermediary since 1980 to get the straight info from the best in the business. However, if the price of documentation is your major concern, Carl will be the first to tell you that you should look elsewhere. His services are more expensive than most others, but his Docs are the best. Nobody does better work!

The $250,000 exemption does apply. You must live in a house for 2 out of the last 5 years to claim the $250,000/500,000 exclusion on your gain. Presuming the seller/grantor has lived in the home 2+ years, they would then need to sell within 3 years in order to enjoy this exclusion.  I personally have done this and have enjoyed this exemption using a land trust.

I don't know where you got your information, but I suggest to you that instead of coming on to a forum with your first post throwing out a bunch of incorrect, unsupported statements, prove them.  

Da Wiz