Sellers of property will often ask me “Do I have to pay capital gains when I sell my property? What is that tax? How does it all work?” Simply stated, you may be obligated to pay a capital gains tax on the gain when you sell your property. This means the difference to what you’re paid for the property and the improvements you’ve put in and what you sell it for. However, federal law does allow you to defer that gain under many circumstances. The rules are involved and we review them with you and each case, but there’s an exemption, generally speaking, for up to $250,000 for an individual and $500,000 for a couple. Deferring the gain on that, assuming they buy a replacement property shortly thereafter but again, come in, let’s discuss it and we’ll address the specific issues as you present them.
This informational blog post was brought to you by Marc N. Needelman, an experienced Hartford, Connecticut Real Estate Lawyer. Contact an experienced attorney to get any questions answered and set up a free initial consultation.