Lori David Boone, Associate Broker, MRP, SRS, RENE, eXp RealtyPhone: (334) 669-9698
Email: [email protected]
Email: [email protected]
Among the myriad costs associated with selling a home, taxes for capital gain on real estate can take up a significant portion. You'll have to pay capital gains tax depending on how long you've owned the property before selling it, and rates can vary by region.
Here is a basic rundown of capital gains tax to help you learn more:
When you start thinking about selling an investment property, one of the most important questions to ask is, “When did I purchase it?” Capital gains and losses can occur over short or long periods, and have different tax rules. If you've had the asset for less than a year, it counts as short-term.
Short-term capital gains taxes use the same percentage as income taxes, which can be upwards of 37%. A long-term capital gain on a property you've owned for more than a year is taxed at a lower rate of 15% to 20%.
State and local authorities collect taxes on real estate to support public services, school projects and other services - just like income tax. However, real estate tax rates are determined by multiplying current tax rates by the value of the properties. Tax rates vary among jurisdictions and may vary depending upon the assessed value of the home.
The simplest way to reduce the cost is to stay in your house for more than one year. This will take you from short term capital gain into long term capital gain, and a lower tax rate.
You can avoid capital gains tax by completing a 1031 exchange, which is a specific type of real estate transaction for investment properties. This is a popular method among real estate investors, but only works if the property you're selling is not your primary residence.
Taxes can be complicated, and real estate is no exception. However, understanding these basics will help you better navigate the real estate world and make the best financial decisions for your future.
Lori David Boone is a highly skilled Associate Broker with advanced real estate designations, including GRI (Graduate, REALTOR® Institute), MRP (Military Relocation Professional), SRS (Seller Representative Specialist), and RENE (Real Estate Negotiation Expert). Lori leverages her extensive legal background and market knowledge to provide high-quality representation for clients buying or selling real estate in the River Region. Her approach is built on strong negotiation skills, marketing expertise, and a commitment to smooth transactions. Currently affiliated with eXp Realty, Lori specializes in the River Region real estate market (Montgomery, Pike Road, Prattville and Wetumpka) , providing comprehensive services from initial consultation to closing.
Lori’s real estate career is distinguished by her dedication to market research and staying updated on the latest industry trends and best practices. Her expertise extends beyond traditional real estate roles, as she is skilled in property listing, market analysis, and creating effective promotional strategies that drive results. She takes pride in building lasting relationships with clients, listening closely to their needs, and delivering personalized solutions that make the buying or selling process as stress-free as possible.
In addition to her real estate credentials, Lori holds a Juris Doctorate and a Bachelor of Arts in English and Mass Communication, which further strengthens her communication and negotiation skills. These qualities, combined with her commitment to excellent service, make her a trusted advisor for both first-time buyers and seasoned investors.
With a passion for helping her clients achieve their real estate goals, Lori continues to be a top choice in the River Region for anyone seeking professional, reliable, and results-driven real estate services.
Reach out to Lori for personalized real estate services backed by a comprehensive understanding of the market and the highest professional standards.