You could be paying less 💵 in taxes

Welp….

It came and went….Tax Day…

If you're like me, you probably swear every April 15th that next year will be different. You'll track expenses, organize documents, and finally learn what the term “basis” means.

Spoiler: I still don't really know.

Now, I'm not a CPA (or even someone who should be trusted with a calculator), but I do spend all day every day thinking about real estate—and it turns out there are a few tax strategies you might want to keep in mind for next year:

1. Home Sale Exclusion

If you've lived in your home for 2 of the last 5 years and decide to sell, you could exclude up to $250,000 (or $500,000 if married filing jointly) of capital gains from taxes. That's the IRS's way of saying, “Thanks for adulting.”

Translation? Owning a home has gobs of benefits beyond pride of ownership, the ability to paint the walls hot pink, and appeciation. 

2. Rental Property Depreciation

Thinking about keeping your home as a rental instead of selling? There can be big-time tax advantages through depreciation—plus some solid long-term income.

It's also the fastest / easiest way to become an Investor. I did this exact thing when I moved from my last home.

Talk to a pro about this strategy before you make a move.

3. 1031 Exchange

If you own investment property, you may be able to sell it and purchase another like-kind property while deferring the capital gains taxes. 

This is basically Monopoly for adults—but with more paperwork and fewer tiny hotels.

Again, I'm just a guy who's sold a few thousand homes and occasionally breaks a sweat filling out a W-9.

If you're even thinking about selling, renting, or buying in the next 12 months, I'd recommend chatting with my go-to tax expert, Patrick Dunlavy at Kezos and Dunlavy, or your personal Tax Advisor.

For what it's worth, Turbo Tax ain't gonna bring you elevated real estate tax strategies…

I'm happy to make an intro, or just chat real estate strategy. You know where to find me.

Onward,

- Jeremy “Grateful for Tax Extensions” Larkin 

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