Real Estate

RE players pushing limits of capital gains tax

therealdeal.comEveryone knows the story: the visionary investor spots the undervalued property, negotiates a favorable deal, holds the asset patiently, then sells just at the right moment, banking a huge profit.

Other, less sexy aspects of the process, like filing the taxes, are usually left out.

But in today’s red-hot market, with prices breaking records nearly every quarter and copiers running out of ink printing investment sales contracts, some aspects of real estate taxation – such as the 20 percent difference between federal long-term capital gains tax and ordinary income tax — can begin to have a major impact on bottom lines.

Categories: Real Estate

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