I have been looking into ways to reduce taxes for my income from the land business. I had a meeting with my accountant a few days ago, and he told me that my income would have to be classified as regular income, to have it classified as capital gains I would have to set the trend in my business of holding properties long term. He said capital gains is 0% tax, regular income is about 30%.
How have you all reduced your tax burden?
1. Does a 1031 exchange work with raw land?
2. Are any of you familiar with Damien Lupo’s QRP, or using a self directed IRA?
3. Is there another way to classify income from this business as capital gains?
4. Do you guys know of any other strategies to reduce taxes for this business?
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