Rental Property sale
There is a different set of rules for rental property sales. The exclusion for sale of residence has nothing to do with the sale of a rental property. When a rental property is sold there will be capital gains tax to pay unless there is 1031 exchange done on the property. The exchange is done in escrow and the exchange rules must be followed.
There is also a problem with the outright sale of a rental property in that the depreciation that has been taken over the years that the property was a rental must be recaptured ( Sort of sounds like a criminal activity). This recapture is done at a higher tax rate than long term capital gains rates.
If you have a situation that needs to be discussed email us at dan@traxtax.com or make a comment on this blog.
There is also a problem with the outright sale of a rental property in that the depreciation that has been taken over the years that the property was a rental must be recaptured ( Sort of sounds like a criminal activity). This recapture is done at a higher tax rate than long term capital gains rates.
If you have a situation that needs to be discussed email us at dan@traxtax.com or make a comment on this blog.
posted by Traxler | 2:15 PM
1 Comments:
Interesting... The 1031 exchange is something that is very popular with alot of my clients.
Alot of rumors and misconceptions about the 1031 exchange flying around out there. Make sure you talk to a tax professional (like Traxler & Associates) before taking the advice of random, unknown internet sites.
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