What specifically are the tax benefits/liabilities of selling real estate either before or after retirement?
Posted on January 30th, 2010 in United States | 5 Comments »
Dave asked:
I heard it would be more beneficial to sell real estate before I retire as opposed to after. What do I stand to gain, or what do I stand to lose if I keep the property and sell it after I retire?
5 Responses
Torrance Homes
None, unless you realize a “huge Capital Gain”.
Any taxable gains is added to your current year income.
This would be less after retirement.
Brigantine Nj Homes
Presumably your income after retirement will be lower making if more beneficial to sell then.
Brigantine Homes
Really can’t think of one either way. When you sell your home, if you have lived in it for more than 2 years, you can take $250000 of gain without paying capital gains taxes. If you are married, each of you gets $250000. So what remains is taxed at the 15% capital gains rate, not your basic tax bracket.
Tempe Arizona Homes
Long term capital gains are taxed at 15%, or 0% (this year), or a combination of the two, depending upon your tax bracket. If your income will be lower after retirement, and that puts you in a lower bracket, that will lower your cap gains tax.
Chicago Il Real Estate
It all depends on the “rest” of your income.
For some individuals, a huge spike in income one year makes more of their SS Benefits taxable. For other people, their income was already being included at the max, so this didn’t change it any.