Capital Gains Taxes Take a Big Bite in Real Estate

Male Hand Filling out Cheque on the TablePlan to write a big check to the tax collector when you sell your real estate when there are gains to be considered.  The owner(s) of real estate should be very mindful of proper tax planning before they sell, this is especially true now that real estate values are on the rebound.  Between the federal, state and local governments, the taxes due could reach 40%, perhaps more, on the capital gains for the property.

To minimize the impact of taxes, there are multiple strategies that can be deployed, such as 1031 Exchanges, Self-Directed IRAs, estate planning, utilizing the IRC 121 Primary Residency shelter and others.  It is important that real estate owners seek out the advice of an appropriate tax and/or legal advisor before becoming obligated to the transaction.

 

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