Just sold a Rental Property. IRS is going to kill my gains help!!!

[Will Mejia]

I had 2 rental properties in Chicago (I dont live in neither). One of them became a nightmare so I sold it a few months ago. I sold it for way higher than I bought it. I have all this cash in hand and I feel IRS is going to take a big chunk from it.

I just did many repairs/improvements on the other property as write offs to help somewhat when I file next year. I'm also trying to max out my 401k contribution so I can have that as  pre-tax money. These things though are minimal. I do not want to invest in another property.

Any ideas how I can reduce my 2024 taxable income?

Also my cash from the sale has been sitting in a 5% money market. Any ideas on where I could invest so I can at least make it work for me if I will inevitably be destroyed by taxes next year?? (would a brokerage account be a good idea?)

[JD Martin]

It's too late to tell you this, but you need to think about your tax strategy before you sell, not after. You're going to owe what you owe; anything you do now is just after the fact that would apply to any tax situation.