When you sell real estate, the profit you make from the sale could be subject to Capital Gains Taxes. The tax rules vary depending on whether you're selling your primary residence, an investment property, or an inherited home. It's essential to consult with a trusted Tax Advisor to fully understand how Capital Gains taxes may affect you. By working together with your Tax Advisor and creating a tailored Real Estate Plan, we can help implement strategies that minimize or even eliminate Capital Gains taxes, allowing you to preserve and transfer more wealth to future generations.

The Capital Gain or Loss, along with the associated taxes, is determined by the Cost Basis of the property you’re selling. Understanding your Cost Basis is crucial because it directly impacts the amount of tax you may owe. To avoid surprises, it's essential to work closely with your Tax Advisor to ensure you fully understand your Cost Basis and any potential tax implications before selling your property.

The Cost Basis of a property may either be "stepped up" or "carried over," depending on the circumstances. In the case of the property owner's death, the Cost Basis is typically stepped up to the current market value, potentially reducing Capital Gains taxes when the property is sold. On the other hand, if the property is gifted, the Cost Basis is generally carried over from the original owner, which can lead to higher taxes if the property has appreciated significantly.

By working with your trusted Tax Advisor and with proper planning, we can implement strategies that minimize the impact of Capital Gains taxes while aligning with the family's overall goals and objectives.

When you sell real estate, the increase in property value is considered a capital gain, and the tax on that gain is known as Capital Gains Tax. These taxes can be a significant barrier to building generational wealth. One of the key factors in reducing Capital Gains taxes is understanding the Cost Basis of the property. By creating a comprehensive real estate plan, we can implement strategies designed to minimize or even eliminate Capital Gains taxes, helping families preserve more wealth and pass it on to future generations.

When it comes to investment properties, one strategy for deferring Capital Gains Taxes is through a 1031 Exchange. This allows you to defer paying taxes on the gain from the sale of a property, provided you reinvest the proceeds into one or more "like-kind" properties that better align with your investment goals.

A 1031 Exchange offers significant tax advantages, but it comes with strict rules and timelines that must be followed carefully. Understanding these guidelines and the opportunities a 1031 exchange presents is essential for avoiding unexpected tax liabilities and maximizing the potential of your investment strategy.

We collaborate closely with your team of trusted advisors—financial planners, CPAs, and trust attorneys—to ensure that the plan you choose aligns with your financial and real estate objectives.

A comprehensive Real Estate Plan starts with a straightforward Strategy Session where we discuss your family's goals and tailor a plan that supports your long-term vision.

Please consult with a trusted Tax Advisor for personalized guidance.