Capital gains

[scottyii]

I built a small commercial building 25 yrs ago. I sold the building in Oct of this year and did not do a 1031 exchange. What can I expect to pay in taxes on the sale and do I have any options to reduce the tax burden?

[drc845443]

Hello there!

You will likely have to pay capital gains tax on the gain you realized from the sale of the property. Your gains are considered long-term capital gains since you held the property for more than one year.

The amount you will pay will depend on your overall taxable income. Please see section entitled "What is the 2022 long-term capital gains tax rate?" in the link below to see your appropriate rate depending on taxable income and filing status:

https://turbotax.intuit.com/tax-tips/investments-and-taxes/guide-to-short-term-vs-long-term-capital-...

If you have any stocks or assets on which you have unrealized capital losses, you may want to consider selling those stocks or assets and use the losses to offset your capital gains from the sale of the building.