Thinking about selling real estate? Dr. Friday breaks down the tax implications for primary homes, investment properties, and 1031 exchanges. Learn about exclusion limits for primary residences—$250,000 for individuals and $500,000 for married couples—and capital gains rates for investments. Don’t forget to understand tax advantages before spending the profits. Stay informed and prepared with these real estate tax tips.
Transcript:
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
If you’re thinking about selling real estate, let’s categorize them. First, your primary home. Taxes on that can include some exclusions—$250,000 for individuals and $500,000 for married couples. Then there are investment properties, subject to capital gains. Rates start at 0% but can go up to 15%, 18.8%, and even 23.8%. There’s also the option of a 1031 exchange, which involves swapping like-kind properties to defer taxes. It’s crucial to understand your tax advantages and pay taxes before spending the money. If you need help, call us at 615-367-0819.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.