When you sell your home (assuming it’s your principle residence), you get to exclude the first $250,000 of income ($500,000 if you’re married and filing a joint return). That’s a nice tax break. But if you sell investment property, you must pay taxes on the gain. And if that adds up to $6.5 million in real estate sales, someone might notice if you don’t file a tax return.
Indeed, that’s just what Jorge A. Valdes is alleged to have done. Mr. Valdes, a resident of the Miami area, is accused of selling $6,485,597.88 between 2001 and 2004. However, the Department of Justice alleges that Mr. Valdes has failed to file a tax return since 1992. The government alleges that Mr. Valdes owes tax of about $1.5 million.
Mr. Valdes is facing four counts of tax evasion for his failure to file. If found guilty, Mr. Valdes will be looking at a significant stay at ClubFed.