How Do You Smartly Sell Investment Property?
If you have an investment property or thinking of buying one, following are the steps you want to consider before selling Think before buying. If you have not bought the investment property, it pays to think through the ownership, income and tax implications. You should evaluate income from rental, investment timeframe, market conditions and other tax situations before choosing ownership. Evaluate ownership. Tax law allows for tax free capital gain on your primary residence. If you can either make it your primary residence or can make a co-owner (such as college going kid) live in the house for 2 years in the preceding 5 years, you can substantially save on tax. Keep tab on improvement costs. They are deductible from the profit for tax purposes. Ensure that you have adequate records for your deductions. Tip: if you are making improvements yourself, like most American property owners do, keep in mind that you can’t deduct your labor. However you can deduct material costs. Plan your sale
