Tax Liabilities When Selling Bonita Springs Real Estate
Tax consequences or tax liabilities can occur for a variety of reason. This primer is only a guideline so you should see professional advise from a real estate attorney and/or CPA before engaging in the sale of your Bonita Springs home.
Most properties can be sold with little to no tax consequence however there are circumstances where a home seller may not understand the potential tax consequences that may burden them if they sell their property before speaking with a tax and/or legal professional. Typically a primary home can be sold with little or no tax liabilities to consider. The tax code allows for up to $250,000 in capital gains for a single person and up to $500,000 in capital gains for a married couple.
It’s what you don’t know about creating a tax liability on the sale of Bonita Springs real estate that can create an issue: A few real estate situations to be aware of include which can trigger tax liabilities:
Death of one or more of the real estate owners on deed.
Sale of a property held long term.
Sale of a property held long term which was depreciated.
Sale of a property which has benefited from significant appreciation.
Sale of a property by a foreign national – FIRPTA
Quit claim of a property by a foreign national.
Quit claim of a property from an aging parent to a child and then the child dies.
The tax laws regarding real estate sales can change significantly without a property owner’s knowledge. There are many times that a listing agent may not know the most recent tax laws, too. That is why seeking professional advise before listing your Bonita Springs home for sale is a wise move. Before selling your Bonita Springs property or using a quit claim deed to transfer ownership of the real estate seek the advise of a professional tax consultant and a real estate attorney. Advise a tax professional may give depends upon the scenario and the future intended purpose of the property owner.
There are circumstances where a 1031 Exchange can defer tax liabilities and save tens, even hundreds of thousands of dollars by deferring taxes and replacing the real estate with like-kind real estate.
To learn more about 1031 exchanges or to be referred to a top notch real estate attorney or local CPA contact Chris Griffith by call or text at 239-273-7430. Chris is an experienced listing agent in Bonita Springs, Florida and a Certified Residential Specialist.