When it comes time to sell their home, the first question most owners ask is, how much is my home worth? But the second question most owners ask themselves is, “How much will I walk away with at closing?” Both of those numbers are, of course, critically important. The SellForSure University will help you understand the […]
A month or so ago I attended the monthly Silicon Valley broker’s meeting of my company, Realty World. They always have a speaker every month, and last month it was a gentleman from First American Exchange Company. He gave an interesting (if you can believe it!) presentation on Avoiding Capital Gains Tax upon Sale of […]
For example, we were doing an exercise on calculating the rate of return on an investment in a home purchase – you buy it for this, you sell it for that, and assuming a modest 3% yearly increase in value, at the end of 7 years, you have made yourself a mint. Except, of course, they left a lot of figures out – like the cost of sale, repair and maintenance costs, the money you spent paying your mortgage above what it would have cost to rent it that whole time, etc. Putting that aside, though, they came up with their “profit” figure, and said, “but wait, that’s an after-tax number, if you had figured that as pre-tax income, really you would be looking at $X!” To figure out $X, they took the gain and added 28% to it, because that’s the tax that you would have paid on it were it income.