TAX question help - Posted by Obi (San Diego)

Posted by Dave T on July 11, 2002 at 18:58:12:

When selling investment property, the capital gains tax rate is 10% (for the 15% bracket taxpayers) or 20% (for everyone else). Depreciation recapture is at 25%

TAX question help - Posted by Obi (San Diego)

Posted by Obi (San Diego) on July 10, 2002 at 14:06:59:

I’m selling one of my property but I don’t plan on buying another one as in doing a 1031Ex. The money from the equity I want to give it to my parents as a gift. Is there a way for me to go avoid paying 30% taxes since it is considered as income. Any feedback would be appreciated.

Re: TAX question help - Posted by Cal, Balto

Posted by Cal, Balto on July 10, 2002 at 23:05:22:

Hello Obi:
I am not an accountant but… Capital gains on the sale of real estate investments are not taxed as income. You will pay 25% of appreciated value and 20% of depriciation you’ve taken since you’ve owned the property. As you can see there are substantial tax implications to selling your real estate. Talk to your accountant for the best way to liquidate your properties.

Good luck

Cal, Balto