Every time we have a new administration, things change, including the tax laws which should be among the things you need to consider when buying or selling a property.
Ryan Haley, broker and owner of Atlantic Shores Sotheby’s International Realty, discusses the advantages of selling right now to help you during the tax season.
There are two reasons why you may want to sell now. The first reason is because there are a lot of buyers who want to buy properties for tax purposes. Currently, there are buyers who belong to certain industries that had a great economic year. These people have some extra money, and they may need to do something for tax purposes. In order to do that, they may need to complete a sale before the end of the year. So, there’s motivation from that buyer to complete the sale this year.
The same thing could be true for a seller, and this is the second reason why it’s a good idea to sell right now. We know the current tax laws, and we know that there will be changes in the tax laws, and there is a chance that capital gains tax laws could change in the future.
If you are going to sell your property today, and you have equity in it and make money with the sale, you could be subject to capital gains tax. Ryan believes that this tax will change, but it won’t be lowered and it is expected to go up under this administration.
Thus, if as a seller, you want to get in on a lower capital gains tax rate, then you might want to get the sale done sooner than later.
If you have any questions about this subject or anything related to selling or buying in the Maryland and Delaware market, please don’t hesitate to contact us, and we’ll be happy to discuss with you.