en en en fi en id en en en en en en en en en en en en fi en en en en en en en en en en en en en en en en nl en en en en en en th en th en es es es tr en es es es tr en en en en en en en en en en en en ru en en
If you’re a real estate investor looking at selling a property, or if you’re thinking of buying a property now and thinking long term about selling it, then you might be worried about what taxes you’ll incur. In this blog post you’ll read about investment property taxes capital gains – what Louisville investors should know about capital gains.
Before you read further, you should be aware that this information is provided in general to a wide range of readers – each person reading in a different area inside or outside of KY, perhaps with different corporate structures, any many other factors. So we’re providing a helpful overview but you should always talk to an accountant and tax attorney before making any final decisions for yourself.
Different Types Of Tax For Different Types Of Income
What Are Investment Property Taxes Capital Gains?
Let’s start back at the basics: When you buy a property, you pay a price; when you sell a property, you get what the next buyer pays you. The difference between the price you bought the property for and what you sold the property for is the capital gain. Let’s say you bought the property for $100,000 and you sold it for $125,000. The capital gain is $25,000 and this is the income that is taxed at the capital gain rate.
Why Do Capital Gains Have A Different Rate?
Capital gains tax rates are usually less than the rate you pay for your regular income. There are a couple of reasons why capital gains are taxed differently: one of the reasons is because the gain can be quite substantial on a piece of real estate so a normal tax rate can be quite prohibitive to pay, so a capital gains tax rate is like keeping extra money in your pocket. The other reason is because the government wanted to encourage the buying and selling of assets (which is good for the economy) so they provided an incentive (a lower rate) to do so.
Capital Gains On Investment Property Versus Your Primary Residence
You should be aware that capital gains on your residence (the house you live in) may be treated differently than other property you own. Some important factors include: whether you live in the house and for how long, or whether it’s a secondary property (such as a cottage) or an investment property such as a rental property. You should talk to a tax attorney about this because the situation will be different for everyone.
If you want to know more about real estate investment properties, or if you want to get introduced to a good tax attorney who can help you optimize your tax situation, click here to enter your information, or pick up the phone and call (502) 706-6876.
Get More Info On Options To Sell Your Home...
Selling a property in today's market can be confusing. Connect with us or submit your info below and we'll help guide you through your options.
We buy houses in ANY CONDITION in KY. There are no commissions or fees and no obligation whatsoever. Start below by giving us a bit of information about your property or call (502) 706-6876...
Street Address Address Line 2 City AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyomingArmed Forces AmericasArmed Forces EuropeArmed Forces Pacific State ZIP Code
This field is for validation purposes and should be left unchanged.
620 South 3rd St. STE 204
SEO Powered By: SEO For Real Estate Investors LLC.Developed By Real Estate Investors For Real Estate Investors