Just thinking about selling a rental property that I have owned for 3 years, and wanted to know what capital gains would be on the sale? Want to raise some Capital for other projects.
Consider a 1031 Exchange to defer paying capital gains. In simple terms, your gains get transferred to the new property and continue to grow tax free until you sell the new property. Capital gains is most likely taxed at 15 percent depending on which tax bracket. You could probably do some research online to calculate your taxable gain. You need to calculate your cost basis.
Your depreciation recapture is at 25%, the capital gain at 15 or 20%.
A 1031 sounds great as I would be reinvesting into anoter property. I will look more into it, has anyone done this with residential propery?
@Shane Waller yes we have done it several times on different properties. The basics are you sell your property. The profits go to a intermediator where they hold the money for you. You can not take possession of the money. Once you close on your sale you have 45 days to identify the property that you are going to buy and 180 days to close. There is a lot more information but that is the basics.
@Shane Waller if you have any questions shot me a pm or a phone call and I can get into more detail about it and let you know what type of deals we have done in the past.
Thanks Eric Doud will do.
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