Selling a piece of real estate can be exciting, but it can also lead to a big bill from the taxman in some situations. When you sell real estate, the sale may be subject to capital gains taxes. Understanding how capital gains taxes work can help you plan the sale in the appropriate way so that you can avoid or minimize these taxes.
Capital Gains Explained
So what are capital gains taxes? This is a type of tax that is charged on the amount of gain that you earned on an asset. In the case of real estate, you’re essentially paying tax on the difference between what you bought the property Read the rest of this entry »