Cynthia Cohn & Associates, Inc. Real Estate Brokerage, Pasadena.

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Facts You Need to Know About Capital Gains Taxes
A capital gain occurs when you sell something for more than you purchased it for, which is particularly true when selling a home. The good news is that there are ways to avoid paying a capital gains tax on your home sale. And since the idea is to keep as much profit in your pocket as possible, today, I wanted to discuss the facts about capital gains taxes. First things first: capital gains taxes can be extremely costly if you’re not careful. This is because any gain that you have made from a significant investment (vehicles included) must be reported to the IRS at tax time. The good news is that there is a qualifying homeowners exemption that can help you avoid capital gains taxes. For example, if your home is your primary residence, you more than likely will not need to pay capital gains taxes. However, please keep in mind that the following criteria must be met: You owned the home for a total of at least two years in the five-year period before the sale You used the home as your primary residence for a total of at least two years in that same five-year period You haven't excluded the gain from another home sale in the two-year period before the sale If you meet these conditions, you can exclude up to $250,000 of your gain if you're single, $500,000 if you're married filing jointly. Also of note, the exemption is only available once every two years. One of the more popular ways people avoid paying a capital gains tax is to conduct a 1031 Exchange. You may have heard of this referred to as a “like-kind exchange” as well. In this scenario, the homeowner would sell their current property and reinvest the proceeds into a similar property. This cycle can go on indefinitely as long as you keep rolling the sales proceeds into another investment property. If you still have capital gains after taking advantage of the exemption, you should turn your attention to lowering the amount of taxable profit or gains you have. There are a variety of qualifying deductions, these being some of the most common: Repair costs to a home or investment property Any improvements/upgrades you have made, like adding on or renovating Lost investment property income due to non-paying rental tenants The cost of legal, professional, and fees to evict a tenant or find a new one Any closing costs from the property sale Please remember to keep detailed, organized records, along with copies of your receipts, invoices, credit card statements, and bills that will help support your expense claims. This is extremely important in case you are ever audited. Perhaps the best course of action is to sit down with your tax professional to discuss capital gains taxes in more detail. They can offer advice specific to your unique situation and advise you accordingly about the best course of action. I’m a local real estate professional who has decades of experience in
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Reviews

1474 Calle Pajaros | The O'Brien Family (Sellers, October 2021)
Just when we thought good old-fashioned customer service was a thing of the past, along came Cynthia Cohn. We have been completely amazed at the level of professionalism, foresight, and attention to detail that Cynthia and her team brought to the sale of our home. It can be overwhelming when it comes to maneuvering all the steps and processes of selling or buying a property, but with Cynthia, we had a completely smooth and enjoyable experience. One of the best decisions we've ever made was choosing Cynthia Cohn to list our property. We followed every suggestion she made and it was exactly right. Cynthia is completely plugged into the pulse of the real-estate market and provided the strategic guidance we needed on areas to repair, improve, marketing, staging, and the showing of our property. The Cynthia Cohn & Associates team go above and beyond on everything they do. They provided a personal touch that helped us to relax and they exceeded all expectations we ever had – it was such a refreshing experience. We can honestly say, if you are considering the sale, or purchase of a property, the first and best decision you could make would be to pick up the phone and call Cynthia Cohn… You’ll be glad you did!
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Charitable Giving

Join Our Toy Drive In Support of Door of Hope
Please join Cynthia Cohn & Associates, Inc. in support of Door of Hope this holiday season. Donations of new toys are a huge part of being involved this Christmas so help us fill Santa's sack for the families at Door of Hope! Unwrapped toys can be dropped off or shipped to my home (message me for address) for ages zero through 18 before December 5th. Visit family wishlists here or purchase your own gifts. Whatever you choose, your donation is needed! There are several ways to get involved with Door of Hope this holiday season. For ideas, visit here. For more information or if you have any questions, contact me. 626.714.6808 or cynthia@cynthiacohn.com.
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Closed

3880 Hampton Road, Pasadena

$1,649,000
3 BEDS / 3 BATHS

Video

Multiple Offers

Pending

1271 Stoner Avenue, 105, Los Angeles

$799,000
2 BEDS / 2 BATHS

Video

Multiple Offers | In Escrow

Sold

5004 Crown Avenue, La Canada Flintridge

$1,495,000
3 BEDS / 3 BATHS

Video

Multiple Offers | $330K Over Asking

Leased

559 Eldora Road, Pasadena

$4,800
4 BEDS / 3 BATHS

Represented Tenant

Sold

111 West Mountain Street, 9, Glendale

$525,000
2 BEDS / 1 BATHS

Video

Multiple Offers | Full Price

In Escrow

2090 East Dudley Street, Pasadena

$799,000
2 BEDS / 1 BATHS

Video

Multiple Offers | In Escrow

Closed

3221 Thurin Avenue, Altadena

$1,100,000
4 BEDS / 2 BATHS

Represented Buyer

Closed

1474 Calle Pajaros, San Dimas

$899,000
3 BEDS / 2 BATHS

Video

Multiple Offers | $81,500 Over Asking

Closed

9119 Duarte Road, San Gabriel

$888,000
3 BEDS / 2 BATHS

Video

Multiple Offers | $55,888 Over Asking

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