When you invest in property you are ultimately faced with a decision whether to sell it or continue generating revenue from it. It requires a lot of work to sell investment property and can take weeks, months, even years to find the right buyer.
Then there’s the issue of taxes that go hand in hand with investment property. Limiting taxes on gains is a priority and one that many people cannot do on their own. At that point, you’ll need a good capital gains pro to help.
Reasons for selling rental property vary widely. The owner may move away and decide to invest in a property closer to the new locale. Sometimes the landlord may simply wish to cash in on the property. If the property owner is losing money for one reason or another, selling can be a viable option. If vacancy becomes a problem for property owners which quashes the resources through rent to cover expenses, selling can rescue the situation.
When it comes to taxes on rental property sales, you will pay more in capital gains taxes than if it were the sale of a personal use property. If you are planning to use your proceeds from the sale to buy a similar kind of property, you can put the money in escrow and have about 45 days to reinvest in a new property. This helps avoid high capital gains tax.
Investing and owning rental property is loaded with challenges, but there are select property management companies that can take the pain away. If you are breaking even or better with your rental property, but just don’t have the time or desire to manage all the details, contact the experts – Cousin James Management – and worry no more.
We may not be able to take the bite out of capital gains if you decide to sell, but professionally managing your property (so you don’t have to) is something we’re very adept at doing. Keeping your property rented to qualified, vetted renters is something we manage from the start. If you decide to keep your property investment and not sell – give us a call.