Tax Considerations for the Real Estate Investor

A quick tax tip for real estate investors:

Investment income, whether from the sale of stocks or real estate is considered a capital gain. If the asset was held for a year or less its a short-term gain, taxed at ordinary income tax rates — sometimes as high as 35 percent. Hold the asset for more than a year and any profit from sales is now a long term capital gain, taxed usually at 15 percent. So, one day more or less could make a 20 percent difference.

Thanks to: Tax Considerations for the Real Estate Investor.