Hello, Our CPA told us today that:
- Based on a selling price of $215,000, I am calculating a gain on the sale of the property of about $127,500. This amount of gain creates approximately $24,500 of additional federal tax and $5,000 of additional WI tax.
Our CPA told us he doesn't get involved in the exchange rules because of the complications. Ahhhh!!!
We are looking to get out of being active landlords, therefore not looking to buy another rental property to manage. We may be open to investing in real estate opportunities as passive investors.
1) What are our best options to defer capital gains payments?
2) How long after the property closes DI u gave to reinvest?
3) If we close on the property in Dec 2022 but reinvest on early 2023, do we still defer capital gains or will this impact 2022 taxes?
4) What do I need to do now before the property closes to ensure I’m not taking a huge hit on my 2022 taxes?
Thank you in advance.
