Capital gains rate for condo sale upon retirement

San Jose, CA · Member since 2015 · 20 posts · 1 vote

hi all,

My question is in regards to capital gains. I was thinking of delaying a sale of a long term rental upon my retirement from my job. If I do this in my first year of retirement with no earned income what is the long term capital gains rate I will have to pay.? I'm trying to figure out ways to lower my tax rate. I'll have gains of approx 300k and 15yrs of depreciation recapture to think about..

Thanks

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Chris Martin
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
11y
@Steven Hamilton II
may be a BP member who can help. I think LTCG is a fixed percentage based on the gain and is independent of other income. An installment sale may spread this out over multiple years?
I think depreciation recapture is a fixed percentage based on the total recapture amount. I'm not sure how you can plan/schedule when the recapture applies other than the year of sale... other than an exchange.
Have you considered a 1031 exchange?
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Bill ExeterBusiness Member
1031 Exchange Qualified Intermediary · San Diego, CA · Member since 2008 · 1k+ posts · 1k+ votes
11y
Hi Jason,
What are your goals and objectives? What are the reasons for cashing out? Have you met with your accountant to discuss exactly what the income tax consequences are? If not, you need to determine the answers to these questions first before you proceed. You might find that an exchange could help you reposition your portfolio to better meet your goals and objectives. You might find that holding and not selling is just as good. It all depends on your goals and objectives.
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