Looking for the best tax tips for property sellers in the Greater Cincinnati Area? Look no further. Nobody likes to find out they missed a chance to save potentially thousands of dollars while diversifying your portfolio. If you’re selling your property, it is well worth your while to follow a system to organize your business paperwork. You should always work with a tax professional experienced with investment properties and put in the work required to take advantage of the tax benefits available when you file your return. To ensure you keep everything you’re entitled to by law, and realize the most in savings on your taxes, take a moment to examine these five tax tips for property sellers in the Greater Cincinnati Area.
Tax-Deferred or Tax-Free Investments
Our first tax tip for property sellers in the Greater Cincinnati Area is special savings accounts for real estate investors. These accounts help you save money when you sell. As a result, you may defer the taxes or have zero tax liability. These individual retirement accounts or IRAs include 1031 exchanges, health savings accounts, Solo 401k, and self-directed IRA accounts. So while there are plenty of rules and regulations, you can grow your real estate investment portfolio while enjoying more of the returns on your investments.
When you sell an investment and make a profit, this is known as capital gains, which brings us to our next tax tips for property sellers in the Greater Cincinnati Area. Using the exemption for capital gains, you could pay no gains tax on the sale. The amount of capital gains on the property is dependent on the time you’ve owned the property and your filing status. Current law requires living in the property as the owner two of the last five years and have owned the property 24 months to realize savings in taxes. You can use the exemption once every two years. There are limits on these exemptions. You must stay on top of current laws and work with a professional to avoid
errors and realize the best savings.
You can deduct the costs involved in selling your property. Among the allowable expenses for homeowners are deductions for your property taxes and any interest paid on your mortgage debt. Check current tax laws for the current limits on these deductions. Be sure to follow guidelines in determining if your expenditure is for routine maintenance or a repair, while both are deductible. They are treated differently in the tax laws. Improvements required for the sale of the home may be deductible. Watch your timing on this expense. Carefully tracking expenses will help with these tax tips for property sellers in the Greater Cincinnati Area, allowable deductions.
Passive Income and Pass-Through Deductions
Our tax tip regarding passive income for property sellers in the Greater Cincinnati Area is to take advantage of the passive income deduction; in other words, you don’t physically work to earn this income. In addition, under specific rules, the pass-through deduction allows you to deduct 20 percent of business income.
Property sellers in the Greater Cincinnati Area can deduct depreciation, which is the loss of value to the structure over time. So naturally, the IRS has a checklist for this deduction that filers must meet as well.
Tax Guide For Property Sellers
The experienced professionals at We Buy NKY Houses work full time to keep on top of any changes that affect property sellers in the Greater Cincinnati Area. In addition, at We Buy NKY Houses, let us show you how these tax tips add up to help provide the best income for the properties we manage. And if you’re you looking for an investment property? We Buy NKY Houses has a steady inventory available.
You only need to make one stop, with the convenience of our professional hybrid agents and investors all rolled into one at We Buy NKY Houses. If you have any questions about which option is best for your situation, We Buy NKY Houses will take the time to listen. We Buy NKY Houses will address any of your concerns with no obligation. To learn more about how our hybrid agents and investors can help you solve your problems, contact We Buy NKY Houses at (859) 412-1940 today and get started.
When you call, we listen. We want to find out what is causing you stress, how fast you need to sell, and how we can help you.
If you have questions like: How do you avoid tax on property sales? How are taxes figured when selling a house? Then reach out to us! Then give us a call. Our Real estate experts will be able to answer any questions you have, can make recommendations and may be able to provide you an offer over the phone!