Tax Event Or Not?

[Dayne]

s About Taxes)/Tax event or not? Advertisement Expert: Ivan Roth - 8/27/2004 I own a summer cottage that includes a house and a piece of land on the waterfront(all on one deed). I currently have exclusive ownership and use of the beach. I would like to sell "rights" to the beach to four of my neighbors so that they have deeded access to the water. In essence change the ownership from one to all five of us. I would deed them 1/5 ownership for a sum yet determined, say $50,000 each. If I did this, would it be a taxable event today or not until I sold the entire property. Thanks, Kevin

[Keondre]

as you describe it would have Capital Gains now however if you and your  neighbors would form a partnership contribute the money and land  as capital to a partnership for the upkeep and maintenace of the beach and then  you withdraw the money as a distribution you would not recognize income until the sale of the land .

but you should have  professional help to structure it right