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how to avoid or reduce capital gain tax for a house owned less than a year?

We just bought a house in Nov. last year with an intention to expand it and move in. Before expansion, we did lots of improvement. Now we have buyers for it and we could gain a handsome profit. Though lease-to-own option will lower our capital gain tax rate when we sell this coming Nov., we prefer to have it sold right now instead of waiting for another half year. Any suggestions on how not paying tax on the gain? Can we create a Family liability partnership (FLP) or LLC and transfer the title from under our own names to the FLP or any other corporation type before selling it? Any creative thought would be much appreciated. Thanks.

Public Comments

1. Have you checked to see how much tax you'll actually have to pay? It may not be as much as you think.
2. You need to consult a real estate lawyer, but you can probably do a Starker exchange to defer the taxes. You will have to take all of the proceeds of the sale and buy another investment property that is of equal or greater value. This other property could be a property that you will eventually move into. There are two catches you must first rent out the house to establish it as an investment property and you will have to own it for 5 years to get the 500K exemption(rather than only 2).
3. Have you checked to see how much tax you'll actually have to pay? It may not be as much as you think.
4. Use the gain money as a down payment for another house if you plan to buy one. You can avoid taxes that way.