6. Selling a rental property? Decrease your tax burden

Final Thoughts

Selling a rental property can be complicated. Generally, you will owe either capital gains tax or income tax on the gains. On top of that, you will owe a tax of 25% on all recaptured depreciation.

It’s best to consult with a knowledgeable real estate tax attorney and a local realtor (preferably one with investing experience) to help you. Choose professionals who listen to understand your particular situation, and provide you with the best options based on your investing goals and current tax situation.

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