Are you Investing?
Hi,
The Phoenix real estate market has been experiencing a tremendous boom in the past year. Throughout the valley, whether in Scottsdale, Chandler, Queen Creek, Peoria or anywhere in between, people buying investment properties have helped to drive the market.
Don't forget to get the best counsel possible if this is what you are thinking of doing. Owners who sell an investment property (one that is not owner occupied) before they have held it for one year are required to treat the sale as a short term capital gain and pay tax at the ordinary income tax rates. The rate can go as high as 35% depending on the tax bracket. If you hold the property for a year or more before selling, the proceeds are considered long-term capital gains and are taxed at 15%. Selling too early can wipe out alot of your gains. You should talk with your accountant for the best strategy. We also can recommend other options for reinvesting, such as 1031 exchanges. Let us be your connection to a wise real estate purchase (or sale)!
Have a great night.
Adam Tarr and Sharon Kotula