How selling your home or investment property might impact your taxes.
How will selling your property affect your taxes? One of the major tax benefits of homeownership is that you can sell your property and write off some of the profits. Currently, you can net a gain of up to $250,000 if you’re single or $500,000 as a married couple completely tax-free.
A lot of people who want to invest in real estate think about flipping houses, which is buying a home, remodeling it, and reselling it for a profit. If you sell within a year, you’ll be taxed on the gain according to your tax rate, which could be as high as 30% or 40%. If you own that property for over a year before you sell, you’ll be taxed using the long-term capital gains rate of 15% to 20% instead.
Start thinking about the exit strategy before you buy. If you want to sell your primary residence, we can help you understand your options. If you’re thinking of investing, sit down with us, and we’ll cover the different strategies to get the most value from your investment and minimize your taxes.
If you have any questions, feel free to call or email us. If we use one of your questions in a video, we’ll send you a $25 gift card. We look forward to hearing from you.