What are the tax implications of selling my rental property?

What are the tax implications of selling my rental property?

When you sell a rental property, you may be subject to capital gains tax on the profit. This includes any appreciation in value since you purchased it.

Are there any deductions I can take to reduce my taxable income?

Yes, you can deduct expenses related to the property, such as repairs, maintenance, and depreciation, which can lower your taxable income.

What if I reinvest the money into another property?

If you reinvest the proceeds into another property through a 1031 exchange, you may defer paying capital gains tax.

How do I report this on my tax return?

You will report the sale on Schedule D of your tax return, detailing the sale price, purchase price, and any deductions.

Can I consult a tax professional for more personalized advice?

Absolutely! Consulting a tax professional can provide tailored advice based on your specific situation.