Good news for real estate investors. The 15% capital gains tax rate has been extended through 2010. According to a tax advisor writing for the Orange County association of Realtors, there is a lower 5% rate for people in the 15% tax bracket. She said that will drop to 0% in 2008 and has been extended to 2010. I didn’t find any other references to this, but on Smartmoney.com, I did find further information on the current tax structure. Smartmoney confirmed the general rule of 15% on the long term capital gains rate, but also reminded investors of the 25% rate that applies to unrecaptured Section 1250 gains (that is the depreciation taken). The bottom line is that it is still a great time to sell real estate and pocket the gains since we have an historically low long term capital gains rate. Now that we are going to have a large Democratic majority in both the house and senate, any bets that that rate will increase? I’ll take that bet.
Long term Capital Gains Rates for Real Estate
About the Author: JOHN DANIEL
John is a well-rounded individual with multiple degrees in business, science, and medicine. Currently, John holds a California Brokers license and has founded Daniel Realty and Investments, considered to be a premier specialty Real Estate Brokerage firm that customizes its approach to its clients’ needs. Daniel Realty and Investments excels at Residential Real Estate Sales in Saddleback Valley as well as Residential Multi Unit properties for investors. John’s primary goal is to maximize clients’ wealth through careful planning and strategic decision making. Contact John today to learn how he can help you.
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