Sell rental property or not
My husband and I own our home and have a duplex rental property that we only made a little over 8000.00 on this yr, we only get our ss and a small pension. So it is a nice addition to our monthly income and we a struggling rather to sell or keep the property, we get 2500.00 a month in rent. im 67yrs old and my husband is 87yrs old. We are concerned with the amount we would have to pay on capital gains. it is a bit of a hassel dealing with tenants and repairs etc. what are thoughts?
Terry Says
You didn’t tell me the price/value of the property. But you could get 4% in Treasury bills or CDs if you put the after tax proceeds into a 6-month CD.
You’ll probably pay about 15% in capital gains taxes on the profits — assuming you do have profits, and assuming that you have profits AFTER you include all the improvements you made on the property.
And you’ll never get a midnight call again about the plumbing! Or worry about property tax increases. Or vetting a tenant.
One note: If you have a huge gain it could impact the price you pay for Medicare Part B and D. So ask your accountant about taxes and your Medicare potential surcharge.
