So you’ve finally decided to sell
your rental property, perhaps because you are relocating to another
city, or perhaps because you are simply not inclined to managing the
property anymore. In any rental property sale, keep in mind that you
will have to deal with taxes and potential liabilities.
A rental property is taxed more than
a personal use property. When it’s sold for a price that’s more
than its purchase cost, it will be levied a profit or capital gains
tax. The determination of the tax amount can be a little complicated,
but you can assume that it’s considerably higher than normal. This
is especially true if you’ve declared depreciations on the property
while you still own it.
