Today I’d like to talk to you about something that’s very important when deciding whether to rent your property out or simply sell it. A big factor to look at is the capital gains tax.
One of the benefits of having an owner-occupied property is that after two years of living there, you have three years to sell the property without having to pay capital gains taxes on the first $250,000 of the sale price if you’re single, and $500,000 if you’re a couple.
It’s a good time to evaluate your next move.
It’s really important when looking at the equity in your property to understand how your money is working for you when that property converts to a rental. It involves finding out the current rental rate of the property, what your monthly payments are, and how much capital is tied up in that property. From there, we can figure out if it’s a good investment for you to hold it in rent, or to cash out before you have to pay taxes on it. It’s very easy to do, it just takes a little bit of time.
Each property is different, and I’d be happy to go over your individual situation with you. If you have had a property for a few years and are debating whether or not to rent or sell it, it’s a good time to evaluate that next move. If you would like my help, or simply have any questions, I’d be glad to answer them. I look forward to hearing from you!
Author:Patrick Southern Phone: 201-232-3381 Dated: April 18th 2016 Views: 447 About Patrick: ...
Professional New Jersey Realtor Associate Patrick C. Southern, is a seasoned veteran boasting 10+ solid years of experience (and has been a top producing agent for the past 8 years consecutively). Presently, Patrick is procuring sales in a wide range of areas across North Jersey and is the #1 producing realtor in Hudson County with over 550 homes sold throughout his career to date. Impressively, in today's rapidly changing real estate market Patrick's business has actually increased by 20% every year for the past 4 years.
Patrick's success in closing transactions can be attributed to a multitude of significant factors including his exceptional work ethic, his continuous effort to educate himself in his field daily, his highly qualified team (including buyer's agent & transaction manager) and his extraordinary database of resources in his field, related to his field and beyond.
Being a lifelong NJ resident, experienced realtor, property owner and investor himself, Patrick has a deep rooted understanding of the NJ market; but most importantly, Patrick always has his clients’ best interest in mind and by setting realistic goals Patrick is able to not just list your home but ultimately sell your home. Patrick is best known for his proactive approach to sales and his undeniable ability to get the job done.
In Journal Square, a building boom has driven excitement as high as th
"Patrick Southern listed and sold my Hoboken condo and I could not have been happier. We talked a number of times over three years as I rented out the property as an investment. As soon as I was ready to pull the trigger and list, Patrick was there to work with me every step of the way from determining the list price, to discussing a sale strategy, to completion of the sale. I received multiple offers and was very pleased with the offer and price I ultimately accepted. I live in San Francisco and so it was of the utmost importance that I have an agent who I could trust to run the show from 3000 miles away. Patrick and his stellar staff did just that--taking care of necessary details, getting documents as necessary to me on the West Coast, communicating with me in a timely manner despite the time difference, and generally making the process smooth for me even though I was far away. I am an agent myself in San Francisco and so I know how great Patrick is. Highest marks for knowledge of the market, professionalism, and responsiveness."