Getting your Trinity Audio player ready...
IF YOU expect to be stuck paying capital gains tax on a pending sale of real estate–such as a vacation home or rental property–waiting until after Dec. 31 to close the sale will postpone the tax for another year.
But some sellers will be better off trying to close the sale before year’s end.
The reason is that many of the new tax law benefits that take effect next year– including the child and tuition tax credits–have income-eligibility limits.
As a result, waiting until next year to close the sale could end up costing some sellers valuable tax benefits if their real estate gains pushed them above the income-eligibility limits next year.
