Investment Property Taxes Capital Gains – What Orlando Investors Should Know
If you’re a real estate investor looking at selling a property, or if you’re thinking of buying a property now and thinking long term about selling it, then you might be worried about what taxes you’ll incur. In this blog post, you’ll read about investment property taxes capital gains – what Orlando investors should know about capital gains.
Before you read further, you should be aware that this information is provided in general to a wide range of readers – each person reading in a different area inside or outside of Florida, perhaps with different corporate structures, any many other factors. So we’re providing a helpful overview but you should always talk to an accountant and tax attorney before making any final decisions for yourself.
Different Types Of Tax For Different Types Of Income
There are different types of tax for different types of income. For example, straight income that comes in from a job might be taxes as regular income at your regular tax rate. But other types of income may be taxed at a different tax rate. For a stock market investor, for example, income derived from dividends have their own tax rate. And for real estate investors, you should be aware that income derived from capital gains on the sale of a property has its own tax rate.
What Are Investment Property Taxes Capital Gains?
Let’s start back at the basics: When you buy a property, you pay a price; when you sell a property, you get what the next buyer pays you. The difference between the price you bought the property for and what you sold the property for is the capital gain. Let’s say you bought the property for $100,000 and you sold it for $125,000. The capital gain is $25,000 and this is the income that is taxed at the capital gain rate.
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