capitol gains tax?
If I sell a home that I have purchased in oct 2001 I lived there till sept 2002 and have rented it since. My renters have moved out and the re-sale of homes there are in great demand. I can make a great profit and purchase possibly 2 homes with the profits. Will I be slapped with a heavy capitol gains tax? Do I have to roll the profits into another property? Any suggestions? Thanks J.
The capital gains tax on your profit from the sale will be no greater than 20%. Add to this, a 25% tax for depreciation recapture.
If you wait to sell until you have owned for five years, the top capital gains tax rate will drop from 20% to 18%.