Sale of income property
As owners of a 2 flat for almost 50 years, we are finally getting ready to sell it. It has not been our home for over 40 years. Being out of the home buying/selling experience for a long time, I was surprised at the mandatory capital gains tax. Is there any way to avoid or reduce it? Thanks!
Terry Says
You need a good tax accountant — and good records of all the money you have put into the property over the years, as well as your original cost basis. And if you took any depreciation along the way, that has to be factored in. So I hope you kept good records. A higher “cost basis” (which incorporates all those dollars invested) will loser your gains tax. And it looks like that rate might be higher next year, so I’d get started now on the sales process.
