Should commercial real estate owners take advantage of low capital gains?
In today’s unpredictable economy, real estate prevails as a solid investment. Real estate undoubtedly commands the highest return on investments. Commercial real estate owners who are thinking of selling their properties must take advantage of the low capital gains taxes before they expire. In the United States, individuals and corporations pay income tax on the net total of all their capital gains just as they do on other sorts of income. Capital gains are generally taxed at a preferential rate in comparison to ordinary income. This is intended to provide incentives for investors to make capital investments and to fund entrepreneurial activity. The amount an investor is taxed depends on both his or her tax bracket and the amount of time the investment was held before being sold. Short-term capital gains are taxed at the investor’s ordinary income tax rate, and are defined as investments held for a year or less before being sold. Long term capital gains, which apply to assets held for
