By Vanessa Saunders. CEO Broker/Owner Global Property Systems
Inheriting property can be a valuable asset, but it can also come with tax consequences such as capital gains tax. However, Global Property Systems has a group of Certified Probate Property Real Estate Specialists ready to provide guidance on how to reduce or even avoid paying capital gains tax on inherited property.
One way to reduce tax liability is by selling the inherited property quickly. If sold immediately, you may not owe any capital gains tax. Another option is to make the inherited property your primary residence, allowing you to exclude up to $250,000 or $500,000 on joint returns of the capital gain from the sale if you live in the property for at least two of the five years before the sale.
If you want to keep the property but don’t plan on living in it right away, you could turn it into a rental and defer paying taxes with a 1031 exchange. Alternatively, if you choose to disclaim the inheritance, Global Property Systems can connect you with a probate lawyer in the Hudson Valley area who can help navigate the legal hurdles that may arise.
Finally, you can deduct selling expenses from capital gains to reduce your tax liability. Whatever your situation may be, Global Property Systems’ team of local area experts can provide valuable insight into the Hudson Valley real estate market and help you make informed decisions about buying or selling property in the area.
So, if you’re looking to inherit or sell property in the Hudson Valley and want to minimize your tax liability, reach out to us at Global Property Systems to learn more about how we can assist you.
