If I want to sell off all my properties in 2021 if possible. I can show that I didn't pull much of a profit on any of them, capital gains should be minimal. (I invested very heavily in their renovation, rookie mistake.) What is going to bite me on the backside and how do I minimize impact?
Trying to retire & don't need the income stream. Thanks.
Talk to your CPA or financial planner or tax attorney. Or all. Your CPA should be able to show you how to structure everything to avoid the most loss or tax base.
@Cathy Malmrose I would definitely recommend you speak with a financial planner that specializes in working with real estate investors. The financial planner should be able to help map out the tax plan and work with your tax preparer to minimize taxes as you sell the properties. If I can answer any other questions don’t hesitate to let me know.
@Dan Maciejewski I have. But I have also found that he doesn't know RE tax law in full and he's the best around here. So, asking the BP community.
There are many things to be aware of depending on your exact situation. One overall thing to keep in mind with selling is depreciation recapture depending on how long you have owned some of these properties. There are other smaller things to consider as well, but would require a closer look into your finances since they are much more individualized.