• Facebook
    • X
    • Instagram
    • YouTube
    • Pinterest
          888-666-0844

Mountain Living Real EstateMountain Living Real Estate

Your Source for Summit County Real Estate

  • Search
    • Our Listings
  • buy/sell/rent
    • Buyers
    • Sellers
    • Renters
    • Property Management
  • Communities
    • Breckenridge
    • Copper Mountain
    • Dillon
    • Frisco
    • Keystone
    • Silverthorne
    • Park County
  • Blog
  • About
    • Client Testimonials
    • Contact

Reduce Your Tax Bill When Selling

Uncle SamYou have owned your Summit County property for years and it has seen some significant appreciation.  Now that it’s time to sell you need to think about that appreciation as a tax bill. It can be a scary thought but when you put it in this perspective you will be motivated to figure out how to reduce your tax bill.

Personal Capital Gains Exemption

Reducing your tax bill doesn’t mean selling for less, although that is one way. More than likely, it is not going to be your best option.  If your home is your primary residence you have a capital gains exception in the amount of $250,000 for a single person or $500,000 for a married couple.  That may be enough to eliminate your tax bill all together. If you’re curious how much capital gains tax you may owe, try out this capital gains calculator.

Reduce Your Tax Bill With a 1031 Exchange

If your home is a second home or investment property consider a tax deferred exchange. A tax deferred exchange is more commonly known by the IRS tax code number as a 1031 Exchange or a Starker Exchange. If you sell your property and plan to buy another property it could be a good fit. The property you plan to buy doesn’t have to be in the same area or even another home; land and commercial properties can qualify too. Learn more about 1031 Exchanges to see if it could reduce your tax bill and be the right option for you.

Convert Your Rental

You may want to convert your rental property into your primary residence for two years before you sell. This can get a bit sticky with how much tax you owe so talk to your accountant before jumping into this.  However, as your primary residence, the property would qualify for the personal capital gains exemption that would reduce your tax bill if not eliminate completely.

Save MoneyCreate a Trust to Change Ownership

Another option that reduce your tax bill is holding a property in a trust. This is more for passing a property along to family than just selling a property.  Ownership can change in the trust without changing ownership of the property. You will need to talk to your attorney and accountant for specific advice on what type of trust you need and how it will benefit you.

Property Inheritance

If you leave your rental properties to your heirs, they will inherit them at a stepped up basis, meaning their current value instead of the original purchase price. Depending what they plan to do with the property, that could minimize or eliminate the tax bill you would have had if you had sold it prior to your death. This is another one that needs advice from a tax professional, financial advisor and/or an attorney.

Your Responsibility

As real estate agents we encounter many different real estate scenarios that have been beneficial to our clients. However, every situation is different. We are not tax/financial advisors nor attorneys.  We highly recommend you discuss your specific situation with your trusted advisor before using any of the ideas mentioned here.

About Us

Mountain Living Real Estate, a.k.a. The Mountain Living Team, is a family owned, second generation, real estate company that has been helping buyers and sellers in Summit County since the early 90’s.  Mountain Living Real Estate is committed to going above and beyond to ensure their clients have the most amazing real estate experience possible.  Jason & Meredith take a personal approach to educate their clients, empowering them to make high quality decisions no matter the situation.  They take exceptional care throughout the sales process and beyond; striving to make each client’s path in Summit County one filled with fun, excitement & great memories.

Work with Mountain Living Real Estate and you’ll understand why so many people say, “We Love Mountain Living!”

Testimonials

The help we received was very good. You always followed thru. You have helped us with two transactions and we would definitely use Mountain Living Co. again.

John & Darrelyn from Boulder August 27, 2024

Read More Testimonials

10. Most impressed with their knowledge of how to handle certain buyers.

Krissy from Virginia April 16, 2024

Read More Testimonials

Contact Us


Jason and Meredith Adams

Jason & Meredith Adams
Mountain Living Real Estate

101 Main St, #109, PO Box 4115 Frisco, CO 80443

(888) 666-0844
team@mountain-living.com

  • Facebook
  • Twitter
  • Instagram
  • YouTube
  • Pinterest

Jason & Meredith Adams are both licensed to sell real estate in the state of Colorado

© 2025 · Equity Framework
© 2025 · Mountain Living Real Estate, Inc.
 

Privacy Policy · Sitemap
Listings Sitemap · Log In