There are several reasons that may lead you to property selling. It might simply because you are not suited to be a property owner, or you may have grown tired of taking care of your property, or you are just in the great moment to sell your property. But how do you deal with property selling? Find out the steps below!
Calculate all the tax implications
This step should go way before you prepare other things for selling your property. Count in every factor that could affect the selling costs for your property. Spoiler alert, one point that goes unnoticed by most people is tax. Your profit or gain from your investment property becomes subject to short-term or long-term capital gains tax. Different countries apply different tax rate. Usually, the tax for short-term investments follows your current income tax rate. The tax for long-term capital investments, on the other hand, has a designated flat rate depending on the countries you reside in.
If your property is listed as a long-term investment, take note of the tax for “depreciation recapture” too. Depreciation is the annual tax deduction from owning an investment property. Noted from Investor Junkie, the cumulated amount of your annual deduction could become taxable income when you sell your property.
Preparing your property for sale
You’ve set your mind that you are selling your property. Now off we go to the second concern: should we renovate the property, or should we sell it “as is”? To find out the exact answer, Investor Junkie suggests considering local market conditions, your investing goals, available cash and your risk/reward tolerance.
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