Waiting for the Market to go up Before you Sell?
Consider this: On January 1, 2011, the capital gain tax reduction that was signed into law by President Bush will "sunset." The tax rate will revert from the current highest rate of 15 percent rate back to the former 20 percent capital gain tax rate that was in effect prior to 2003 unless it is extended.
Many experts and many of those in the know do not expect that extension to happen so the higher rates are going to kick in if it does not. Most experts and those in the know also do not expect to see any appreciable raise in real estate values in the near future also. So, bottom line is that if you have:
1) equity in your investment properties
2) or more then 250k or more equity in your home if you are single or married filing separately or 500k or more equity in your home if married filing jointly,
AND: were considering selling sometime in the future ,
it might be wise to contact your tax professional very soon. If you then decide it may be best to go ahead now, give me a call at 591-5239 and I would be glad to discuss the current market with you and if it would be best to put your property up for sale now if it will save your 5% in any capital gain taxes. None of us have a Chrystal ball but it may be worth your time to explore this.