Whether you’re an investor who’s gearing up for retirement, or anyone wanting to cash in while values are up, you might be thinking of selling your investment property. Now could be a great time to exit, but it literally pays to do more research first.
According to financial planners, not enough people explore all the options for protecting their capital gains, such as:
- 1031 Exchange (broadly available in the US, but not Canada)
- Timing the sale so that your tax rate is lower when you sell (this can be a huge benefit)
- Using available capital gains exemptions
- Tracking and claiming all allowable expenses
- Holding the property as a trust
- And many more
Check with your own financial planner to see what tools are available to you and what your best scenario might be. Ideally, you’ll do this years before you plan to sell, but there are things you can do even now, if you decide it’s time to sell.