Selling Your Investment Property in 2010 Could Save You Thousands in Taxes

If you are an investor looking to sell one or morerevenue will be taxed at the lower 10% rate.
of your real estate holdings, you might want toThis advantage means that you will keep more of
consider completing the sales transaction in thethe profits when you sell your house now, instead
next year. At the end of 2010, tax cuts put inof waiting until after the end of 2011. Whether
place by President Bush will be reset to standardyou pay just the lower amount of capital gains
income tax rates and you will lose yourtax, or you split the percentage rate, you will still
opportunity to take advantage of the lower rates.likely earn more from the sale in the next year
As an investor looking to sell a house fast, youthan at any point in the future.
are most likely already familiar with capital gainsThe market is definitely leaning toward sellers
taxes, but most home buyers are not. Therefore,right now, because there are many individual
the decision to buy houses in PA is not madehome buyers in Philadelphia and investors looking
because of the capital gains tax reductions thatto buy houses in PA. They are looking for deals,
you, the seller, will get if the property sells beforeand although the idea of selling at a lower price
the end of 2010.does not always seem appealing in comparison to
The current capital gains tax rate is actually awaiting a year or so to sell, today it is not a bad
two-fold calculation. If you are selling a propertyidea to sell a house fast for a lower price. This is
for which you have claimed depreciation, then youbecause even at a lower selling price, your
must be aware of the total amount of theproperty is going to bring you larges profits than
depreciation claimed. Many investment homeif you wait a year and sell for a significantly higher
buyers bought properties as part of a we buyprice.
houses type program and want to sell the houseKeep this information in mind as you make
now. In that case, the capital gains tax rate will bedecisions regarding your real estate investments,
10%.particularly if you are already planning to sell in the
On the other hand, if you have claimednear future. There hasn't been a better market
depreciation be aware that when you find a homefor home buyers in years, and fortunately for the
buyer, you will be taxed at 25% for the amountinvestor, prices are higher than they were over
that you claimed in depreciation when you sellthe last few years and there is a significant profit
your house now. The advantage of selling is still into be made by selling in the next year.
your favor however, since the remaining sales