Selling Your Property? Understand Capital Gains Before You List

When property values rise, selling can mean a big payday — but it can also trigger capital gains tax. Understanding how it works can save you thousands.

How Capital Gains Work:

• The gain is the difference between your selling price and your adjusted basis (what you paid + improvements – depreciation).

• Short-term gains (held <1 year): taxed as ordinary income.

• Long-term gains (held >1 year): lower tax rate, typically 15–20%.

Pro Tip: Keep detailed records of improvements. Every dollar spent on upgrades raises your cost basis and lowers your taxable gain.

💡 Key Takeaway: The more organized your records, the smaller your taxable gain.

⚠️ This blog is for informational purposes only and does not constitute tax, legal, or accounting advice. Please consult your CPA for guidance specific to your situation.