CASH HOME BUYERS IN METRO ATLANTA, GA
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Sellers always look to avoid capital gains tax in Georgia, but it’s not always possible. Selling real estate results in sizable profits, especially if you or your family have owned that property longer than five years, and can trigger authorities to impose a tax on the gain. This capital gains tax earns the state and federal government substantial portions of YOUR money. When selling your house in Georgia, consider the impact of capital gain tax and learn how to avoid paying it.
Gaining sound knowledge and a proper understanding of capital gains tax is essential to optimize your potential for savings and profits. Explore the legal ways to prevent Georgia capital gains tax by continuing reading this blog.
Short-term tax is the capital gains in which the profit originates from the assets (Personal, investment, or capital) retained for less than a year. The rate of short-term tax capital gains depends on your income, but varies from 10%-37% of the profit.
For example, if you purchased an asset (such as a house) recently and want to sell it within less than a year you will be required to pay a hefty amount of short-term capital gains tax on the profits from the sale of this house. This tax is calculated by both State and Federal governments. This tax rate is higher than long-term capital gains tax, as the government wants to encourage stability through the longer term ownership of real estate and other assets.
If you have retained a property for over a year and the profit originated after selling it, it is called a long-term capital gain. The tax rate subjected to this profit is called long-term capital gains tax, and its rate is significantly lower than the short-term version.
Therefore, it is suggested that you keep your assets for a long time to reduce the tax rates. For people who have inherited a property, this long term is almost always ‘baked in.’
Both Federal and Georgia long term capital gains taxes are conveniently calculated from the income obtained after selling an investment, plus other considerations such as your marital status, number of dependents, whether or not you are a military veteran, etc. This tax rate ranges from 0% to 20%, depending upon your income bracket. And don’t forget you’ll be paying a similar tax to the Federal government, too!
From a federal standpoint, the first $13,610,000 of an estate is exempt from taxes, and the tax rate is progressive on the value above that, meaning it gets higher as the value climbs higher.
Capital gains tax on inherited property Georgia are even lower…As in non-existent! Georgia is one of the few states that DO NOT tax estates!
So when you inherit an estate in Georgia, the only taxes you need to worry about are federal taxes paid to the Internal Revenue Service.
Here at Light Box Invests, we’re no fan of paying The Man, and we don’t want you to have to pay a single penny more than you have to when you sell a property to Light Box Invests.
Consulting Light Box Invests before selling your personal, business or inherited real estate is a sound approach to maximizing your return. They work patiently to get a thorough overview of your situation in order to craft strategies for mitigating or avoid taxes according to the law.
Light Box Invests wants you to take all the time you need to put these strategies in place. As they are not attorneys nor certified accountants, the team at Light Box Invests will direct you towards these needed professionals to work out the details needed to implement these strategies prior to closing.
In fact, in some cases Light Box Invests will even pay for the professionals to help you, should you need it. We have helped clients pay for lengthy probate and quite-title legal processes, and we have paid for financial advisors and accountants, too. Your needs come FIRST at Light Box Invests.
In some cases, structuring the financial aspect of a transaction can be critical to a seller avoiding taxes, and Light Box Invests has plenty of experience in creating owner-financing transactions that either save you money through spacing out the transaction, or earn you interest you can use to pay your tax liability.
Knowing and understanding the fundamental aspects concerning capital gains tax in Georgia is important to making a smart sale of your unwanted real estate, and you’ve come to the right place when searching for a buyer that shares your goals of reducing taxes.
If you don’t want to donate a hefty amount of money from the sale of your property or inherited property to the IRS or the State of Georgia Department of Revenue, get in touch with us as soon as possible by calling 470-668-5008, emailing us at info@lightboxhomes.com, or by filling out the form on our website.
The rate of capital gains tax is not fixed for all in Georgia. It depends on the category you fall into, such as short-term and long-term. The tax rate may vary depending on your house's status and the income generated from it.
Capital gains tax is imposed by the Internal Revenue Service of Georgia. This tax is exempt if you live in a house as a primary resident. The tax is imposed at $250,000 if you are a single filer. However, for joint filers, the tax is implemented at the rate of $500,000.
Professional real estate experts and legal attorneys can provide guidance to avoid capital gains tax. Light Box Invests is also a reliable option, offering professional assistance to streamline the selling process and navigate capital gains tax efficiently.
When choosing Light Box Invests, you will receive expert guidance. Their team will navigate the complexities of capital gains tax to save you money and increase your profits.