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I have a rental property in CA that I want to sell. Purchased in 1992, I have about $200K equity and turned it into a rental 3.5 years ago. I understand I will be paying 7.75% county tax and 28% federal tax, so about 36% not to mention commission to the real estate agent. How can I mitigate some of the 36%
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Real Estate Law Attorney serving Los Angeles, CA
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I think you are mistaken regarding the 7.75% county tax. Perhaps you are thinking of the state income tax? The best way to postpone the tax is to buy another property with the proceeds via a 1031 exchange.
Answered on Nov 30th, 2020 at 6:26 AM