Kim & Kristine, Santa Monica Real Estate & Short Sales santa monica homes & living

Why Sell Now? Avoid a Big Capital Gains Hit

November 3rd, 2010 at 3:36 pm | Type:

Author: kimandkristine | No Comments

If you’ve noticed homes coming on the market for the first time in fifty years or more, it’s for two huge reasons. The first is a big increase in capital gains for 2011 and the second is estate tax is coming back.  This time we’re talking about capital gains, stay tuned for more on estate tax.

For expert advice on this topic I’ve turned to Santa Monica based expert; Jane Beaumont Hall, Attorney of  Hall Doyon Law Group. She spoke at our office last week and as a result a sizable estate has come on the market.

Here is an excerpt from her article: “Buy, Sell, Hold – Why Sell Now”
We all know why a buyer should buy right now –low interest rates,
lower prices, buyer’s market for negotiating and …
The harder question is why should a seller sell right now, this year and
soon?
1. Capital Gains Are Going Up in 2011!

A seller has until January 1, 2011 before the 20% capital gains
tax returns, after an 8-year stint at the 15% level (for higher income
brackets). Capital gains taxes can be assessed on investment and
personal residential property.
Did you know that in 2010 capital gains are taxed at 15% on the federal
level and can be as high as over 11% tax on the California side? That is
a hefty 26% or so of the gain. (However, if you’re in a lower income tax
bracket (10% or 15%), your capital gains tax rate can drop to zero).
Next year (unless Congress changes something) we are looking at
capital gains rates of 20% for those who would pay 15% now- so with
California that’s 31%. And if a taxpayer makes more than $500,000 in
income there is going to be a surcharge of another 5.4% for health care.
For high earning taxpayers as of January 1, 2011, capital gains may be
over 36%. That is worth paying attention to!

To read the entire article click here.

If you’ve considered selling and want to walk away with as much money possible, it’s not too late. Contact Kim at 310.737.8173 to discuss maximizing your profit and establish a value of your property.

Filed under : Luxury Lifestyle, Perspectives, Real Estate, Selling a home