Like Kind Exchange or Take the Gain?

Capital gains tax rates remain at an near all-time low. If you are selling a property with a big gain, you have a decisión to make. Do you pay the tax now and keep whatever cash is left over? Or should you roll the property into another one and delay the tax to a future date?

Some things to consider: Do you really want to buy another property? We’ve seen taxpayers get so focussed on buying something, anything, that they end up with a real dog of a property. The loss they took on the exchange is way worse than they would have had if they’d just paid the taxes.

How much tax are you expecting due to capital gains? How much tax will be due to depreciation recapture? Under current law, those are two different rates.

If the capital gains rate goes up, how much of a difference in tax do you anticípate?

And then it all comes down to an educated guess. Remember buying property should be a financial decisión, not a tax decisión.

Thank you for choosing UsTaxAid Services, we would be glad to assist you with all of your tax needs and have you become our client. We can have a Client Representative get in contact with you or you can call Richard at 888-592-4769.

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