Rental house was sold and closed recently. We are retired. Is there any strategy to reduce the capital gain tax?
Defer Capital Gains Taxes WITH or WITHOUT a 1031 Exchange
Rental house was sold and closed recently. In early January of 2025, the capital gain is around $300,000. We don't qualify for a 1031 exchange. We are retired. We have about $40,000 annual income. Is there any strategy to reduce the capital gain tax?
Question ID: 6604999 Status:
Open Apr 17, 2025 - 12:28 PM
1answer
Answer
Apr 17, 2025 - 12:28 PM
And if they did not set up a 1031 exchange, we can look at some tax credits. Okay. So, for example, solar credits, you know, depend on the tax bill. You pay into the solar project, and you'll get some tax deductions. And then over the next, say, seven, eight years, you're going to get 50% of that money back. So it saves you on the tax bill, and you get about half of that back. So it works out to strengthen your estate over time. So we can look at that to see what makes sense when we get the real numbers.
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