This Might Be Good Tax News For Investors

Time is getting short to sell investment property in 2010.
However, we are passing along some information we received from our accountant which may be helpful to your clients who own investment property....especially for the ones who would like to sell, but hate to think of the taxes owed. Also, they may not want to do a 1031 exchange, because really and truly they want to get out of the landlord business.

Disclaimer-we are not accountants and your clients should check with their financial professionals to check the accuracy of our information and also to see if it applies to their situation.

This is our information: Under the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA), capital gains tax will be -0- if the investment property is sold in 2010, AND IF taxable income tax rate for the investor-owner is 15% or lower. According to the 2009 tax chart, taxable income for a married couple filing jointly could be up to $67,900 and still be taxed at only 15%.

This tax break probably would not help high income investors, but it could well be of interest to those at this income level or below.

Maybe we should contact our newly elected Washington representatives to extend this 'tax cut' into 2011!

If you have investment property to sell in the Nashville, Middle Tennessee area, and want more information, we will be glad to ask our accountant any questions you have. Or check with your own accountant first, and then call Sarah or John Rummage, 615.945.1838 to talk about getting your property on the market, ASAP! Email us here.