Capital gains on sale of rental property for someone over age 65

Forum|Forum|1 year ago
August 16, 2024
2 replies
4 views

I own a rental property in Marietta Ga. that I am thinking of selling and have a couple of questions. I am over 80 years old & married.

1. Is there any way of avoiding paying capital gain on he sale? Would putting the proceeds in a trust work? How about using the gains to invest in an REIT?

2 What would the tax rate be on the sale for someone over 65 making adjusted gross would be less than $500,000

Thanks

Frank

Bsch4477

Level 15

Short of a 1031 exchange you will not avoid the 15% capital gains tax.

Mike9241

Level 15

the capital gains tax rate will depend on the gain when added to other income.

depreciation recapture can be taxed as high as 25% it's only the gain in excess of the depreciation recapture that gets the favorable capital gains rate. In addition, the smaller of your modified adjusted gross income in excess of $200,000 or your net investment income would be subject to the 3.8% net investment income tax.

Mike9241