Avoid getting clobbered with property gains taxes
I own a property, condo, since 1978, have rented it out since 1988, have depreciated it over the years. I’m now 78 years old and want to sell the property, how can I avoid or minimize the capital gains taxes?
You can’t! This is a rental property, not your primary residence. So gains on sale are taxed as capital gains, and your previous writeoffs will increase the gain.
Consult a CPA to look at your entire income picture and the amount of gains tax you would owe. The good thing is that capital gains tax rates are still pretty low. But a gain could impact the cost of your Medicare Part B, so ask your accountant to take that into account when making this decision.