Selling rental properties

[Gerald Maczuga]

I plan to sell 2 rental properties in 2024.  I heard that I can avoid paying capital gains on them if my husband and I make less than $94,000 combined.  We are retiring in a few years and will likely make less than that next year.  Is this a true method to pay $0 in capital gains?

Example: 

The value subjected to capital gains of the rentals will be approximately $400,000 due to appreciation.
 

Our taxable earned income from our employment will be approximately $85,000.  Will we be required to pay capital gains?  If so, how much?

[Bill Hampton]

@Gerald Maczuga

I recommend finding a tax strategist specializing in real estate taxation. You may want to consider working with your tax strategist remotely to expand your options.

I would also recommend looking for a tax strategist willing to work with you throughout the year, not just when preparing your tax return. You want an accountant who can help you strategize and who is responsive when you want to know the tax consequences of the decisions you are making throughout the year.

Good luck.