Tax Implications When Selling Rental Property in West Allis
Tax Implications When Selling Rental Property in West Allis
Whether you have grown tired of the landlord title or need to sell your rental property for other reasons, make sure you are aware of the tax implications of selling your rental property. It is important to be aware of what awaits you after selling a rental property. We will break down some of the things you need to know, and hopefully help you find a solution.
Capital Gains and Capital Losses
Become familiar with the tax implications of selling the rental property. It will involve capital gains or capital losses. These implications will involve the area of the tax law, both on the Federal and State level.
Determine your capital gain by figuring out the difference between the sale price and the adjusted tax basis. Capital gains pertain to either a short term or long term gain.
There is a chance that you purchased rental property and found it wasn’t for you and you may decide to sell it within the year. If this is your situation, then this would be short term. So if sold at a profit, it would be taxed as short-term capital gains. This is taxed at the standard income tax rate.
If you have owned your property for longer than one year it will be subjected to a different tax rate. This is a long-term capital gain. The rate can be anywhere between 0% to 20%, but most often falls within the 15% range.
The tax implications when selling rental properties are determined by the basis of the rental property. So usually it will be the amount that you paid for the property, plus additional expenses that you incurred to make the sale. If there was damage or something happened that decreased value, then you can likewise decrease the basis amount. Same goes if you made modifications to the property that added the value of these improvements to the basis. Keep in mind that there are some advantages to an increased basis as it can help to reduce the amount of taxes you will have to pay. This will allow you to enjoy an increased tax deduction with a capital loss.
Tax Consequences
You may also potentially run into another tax consequence of selling a rental property: incurring the new Net Investment Income Tax. If this applies to you, then you may have to pay an additional 3.8% on your net investment income. This is applicable to specific thresholds and deals with capital gains. Since this is not your personal residence you will not be eligible for the capital gain exclusion. Which amounts to $250,000/$500,000.
Although you may feel overwhelmed, it is important to be aware of these tax implications when selling your rental property in Wisconsin. If you feel that you are aware, and it is the best decision to sell your property still, then you are probably asking yourself where to start now.
Selling Your Rental Property
Because of all of the taxes you are going to have to pay, it is important to make the selling process as inexpensive as possible. If you hire a real estate agent, make sure you are aware of the huge cost they will be. On top of the large realtor fees, keep in mind that in order to sell your home, they may require expensive repairs and renovations.
If you want to sell your rental property on your own, it is possibly the best option to save money, but you may have a hard time finding potential buyers since you can’t list your home on the market when selling your house by owner. When you do find a buyer, they may only buy the home if you make repairs which can become very expensive and takes a lot of time. You also will need to consider that if you sell your property, you may not have tenants wanting to live in it during the process so make sure you can afford to have the property vacant.
If you are feeling overwhelmed and really don't want to pay more money during the selling process, then sell to Fair Deal Home Buyers. We are cash buyers in West Allis and want to purchase your rental property for cash. We will purchase your property as is so that you don’t have to make any changes to the home or pay a percentage of your profits to a realtor. This will help save you money so that after you have paid your taxes on this property you can still profit off of the home.
Contact us today at 414-409-8251 for more information. We will come out today and get you a cash offer and you can be freed from this property in as soon as seven short days.
Everyone that I worked with was genuine and helpful through the whole process. I think highly of the company and everyone I talked with in person and by phone/text. I highly recommend this company.
We have enjoyed working with everyone from Fair Deal Homes. Everyone from you and Peter, to the inspectors, to Jackie at the title Co, were all a pleasure to work with.
This was an awesome experience. Fair Deal Home Buyers were exactly that--fair dealing. Peter and Shan were both excellent in helping us, explaining the process, and providing a smooth transaction. This was an excellent experience from start to finish. I could not be more pleased! Totally first rate all of the way!! Thanks, Fair Deal Home Buyers!!
This was a great process for me there were no hidden things that came up everything that was said at closing was delivered the staff was very helpfulf especially Beza she was awesome. I would highly recommend fair deal to anyone.
It was very enjoyable working with this company . They are very understanding . Hard working and move as fast as you want them too. I would definitely use this company again. Thank you very much Ben have a great day!!
The process was way easier than I ever would have thought! Fair Deal is by far the way to go! Everyone is super helpful, up front about everything truly top notch the list goes on! From the first phone call to start the process of selling to the closing was nothing less than perfect! Beza was super helpful and prompt on any ? Or concerns we had.
Fair Deal Home Buyers were excellent to work with in selling our home from start to finish. They were upfront and honest through out the process. I highly recommend them.
Everything went smoothly and everyone made time for our work schedule as well for our dogs scheduled I would recommend fair deal home buyers LLC to all who seek to sell there home thanks to all who helped
I recently had the pleasure of working with Ina at Fair Deal Home Buyers, and I must say, it was an outstanding experience from start to finish. Ina's professionalism, expertise, and genuine care for her clients truly set her apart. I wholeheartedly recommend her services to anyone in need of assistance. Thank you, Ina, for your outstanding help!
My experience with Fair Deal Home Buyers was extremely professional and highly ethical. The entire team communicated daily with any updated information needed to streamline my selling process. I recommend Fair Deal Home Buyers for those in search of a highly ethical, professional, and team oriented real estate company.
If you are looking to sell your house, Fair Deal Home Buyers LLC are very professional and they won’t try to low ball you on the value of your property. Very respectfull and helpful when you have questions or concerns. Beza was my main contact and she was wonderful and prompt getting back to me with the questions I had and processing the paperwork. If you are looking to sell your house, give them a call, you won’t be disappointed.
Polite courteous very professional staff everybody I work with there understood my needs and worked in cooperated to make sure that they happened . I would highly recommend them to anybody.
Each person was easy to work, very professional. The process was quick and went smooth each step of the way. Would recommend Fair Deal Home Buyers to anyone who looking to quickly sell their home
If you find yourself needing to sell your house quickly and want to work with trustworthy home buyers who offer fair deals and exceptional service, Fair Deal Home Buyers are definitely the way to go. I couldn't be happier with the outcome. Give them a call, and you won't be disappointed.
Fair deal home buyers are a life savers, I had an urgency to sale my parents house that I inherited and had some complications with the POA but Amir Erez was so helpful speeding up the process with their lawyers and in three weeks they closed on my house and I got cash in my hand to be able to move on. Thank you guys for your help. Definitely recommend it.
Our experience selling our home with Fair Deal Home Buyers was a positive experience. They were quick, efficient, and worked with us, even though we were no longer in town.
We had such a great experience working with Nina. She made the process so easy! She presented our options clearly so we were able to make an informed decision to sell our house quickly. She listened to us and paid attention to every detail - HIGHLY recommend!
As a buyer from fair deal, I would recommend them! They were fast in their communication, kind in their interactions and clearly seems to have everyone’s best interests at heart. Working with Tiffany was a great experience. I love working with people who are kind, fair and clear in their communication. I’d recommend them to others, and have! -Dave
Fairdeal Home Buyers is an outstanding company. The process with them was seamless with no surprises at all. They closed in a timely fashion and I received my asked for my property.
I am very happy with the service I have receive from Fair Deal Home Buyers. The whole procces has been very simple and easy to understand. I'm moving in from out of state and i don't think I could have found a easier and better way to move in to my new home. Thank you so much.
I recommend Fair Deal Homebuyer well detailed information about what to expect from them it was fast deal they offer and we agree .It was really fast and fair
They are great to work with. Professional, kind, responsive and straight forward. I learned getting a cash offer for a house does not have to be complicated or take a long time, thanks again!