Selling a rental home can create significant tax consequences. Before listing your property, it’s important to understand how capital gains tax and other financial rules affect landlords in Tennessee.
Capital Gains Tax
- Short-term vs. long-term capital gains.
- Example: Selling a rental in Murfreesboro after 10 years of ownership.
Depreciation Recapture
- If you claimed depreciation on your rental, the IRS requires repayment upon sale.
- How it impacts your net profit.
1031 Exchange Option
- Allows reinvestment into another property tax-deferred.
- Must identify replacement property within 45 days.
- Must close within 180 days.
Other Financial Considerations
- Deductible expenses (repairs, property management, etc.).
- Selling at a loss and offsetting other gains.
How Integrity House Buyers Helps
- Quick sales let you time the market.
- We buy as-is, reducing costly repairs that could cut into profit.
Conclusion
Taxes can feel overwhelming, but with the right planning and the right buyer, you can simplify the process. Integrity House Buyers provides quick closings and cash offers so you can move forward with confidence.
🔗 Related Reads: How to Sell a Rental Property in Middle Tennessee: A Complete Guide