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Old 03-31-2015, 08:09 PM
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Once capital gains are paid is the balance still taxable regular income.

I have several rental properties and want to sell them all in a package.
Once depreciation is paid back and capital gains are paid.. will the balance of the sale price be considered regular income and be taxed at what ever my normal rate would be.... is there anyway to minimize the tax liability in this case.
Would it be significantly better to sell say 2 per year until the 12 or sold in other words will the sale of all 12 in one year eat me alive with tax.



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Old 03-31-2015, 11:32 PM
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Once depreciation is paid back and capital gains are paid.. will the balance of the sale price be considered regular income and be taxed at what ever my normal rate would be.... is there anyway to minimize the tax liability in this case.=========>>>>>>>>>>>>>>sec 1250 unrecaptured depre taxed at 25%, if your tax rate is 25%, will increase your ordinary tax liabilities by relatively reducing your sec 1231 long term capital gains subject to 0 % to 15% tax rate unless you dispose of them at losses; at a loss, you do not need to recapture sec 1250 recaptured depreciation taken previously. You can use your losses to offset capital gains. In other words, if you sell a $800k property for $700k, you can take $100k of tax-free profits that tax year. The loss will simply cancel out the gain. One way to take advantage of this strategy is to sell appreciated stock or other appreciated properties in years that you sell property at a loss. After this,You also can claim up to $3,000 of losses against other income on your returnIf a rental property sale leads to a capital loss, the irs limits the amount you can deduct but allows you to carry over losses to subsequent tax years.as said above, the IRS requires you to report and pay taxes on capital gains when you sell them. However, if you lose money on the sale of the properties you may qualify for a capital loss deduction. If you owned the properties for more than one year, the IRS considers this a long-term cap losses. If you owned the property for less than one year, the sale can constitute a short-term cap losses. As of the 2010 tax year, the IRS allows you to take a tax deduction of up to $3k for capital losses, or $1.5k if you have a wife or husband and file your taxes separately. If your losses exceed the limit, you can claim the additional amount in subsequent tax years. To determine the amount of a capital loss or gain, you must know the basis of your rental properties. In the majority of cases the original property basis equals the money you spent to buy the property, which can include costs such as the purchase price, realtor fees and sales tax.











Would it be significantly better to sell say 2 per year until the 12 or sold in other words will the sale of all 12 in one year eat me alive with tax.==========>>>>>>>>>>>>>>>I guess it depends on many variables so not so simple to answer on the issue.



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