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I know what you’re thinking: “So the real estate broker wants to convince me to sell property? Very Original.” And while people always must be buying and selling to keep us in business, this year may prove to be especially advantageous to unload pieces or all of your portfolio.

One of the recent breaks investors have enjoyed has been the low 15% Capital Gains tax rate on recognized gain on the sale of real estate over the past years. And while many have been taking advantage of tax deferral using 1031 exchanges these times wont last forever. Or they wont last beyond the end of 2008 to be more specific. That’s right, the end of the year is when this favorable rate ends it’s run and many speculators don’t know what the rate will be in 2009 but they all agree on one thing; it won’t be lower. Depending on the shift in political power in the White House and new policy brought in by a new administration who knows what this rate could jump to.

And that is scary enough to make those who have been deferring multiple sales over the last 10 years or more use 2008 as the time to take their tax hit while the 15% rate is still in effect. If you are curious as to what your capital gains situation could be, talk to your accountant first and then give us a call so we can advise you as to what your property is worth in today’s market. With that information we can assist you in planning your commercial real estate portfolio tax strategy and saving you your hard earned money.

Peter J. Barnett, CCIM

This entry was posted on Saturday, January 19th, 2008 at 12:36 pm and is filed under The Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.