Are you thinking about selling a property within the next 12 – 18 months? Now may be the time to do it.
Why sell now?
- Listing inventory is at a 20 year low
- Buying demand is extremely high
Tax Laws Changes that could be coming in 2021:
- Section 1031 exchange. Under this tax break, if owners of investment and business properties use the proceeds of the sale of one property to purchase another within 180 days, then they can forgo paying capital-gains and depreciation-recapture taxes. The Biden plan would eliminate the ability to do this when capital gains are greater than $500,000.
- Capital Gains Tax to go from 20% to 39.6%
The proposed Tax Law changes may never get passed, but this is what is currently being discussed.
As stated in the opening line, if you’re thinking about selling a property or doing a 1031 Tax Deferred Exchange in the next 12-18 months, now may be the time to do it.
For more information about this topic or you would like to inquire about the steps you need to take about Selling your property, reach out to us at (618)277-4400