Six Basic, Quick and Inexpensive Tasks to Make Rental Properties Pop and Amaze Potential Tenants
Due to external factors such as significant capital gains tax exposure many people are choosing to rent out their homes versus selling. The more forwarding-thinking people are employing a strategy where they rent their property for two years or so, then sell their property (maintaining their IRC 121 & 1031 benefits) and exchange into another more potent cash cow. After all, in California a real property sale can trigger a 38% tax hit the following April due to capital gains issues – assuming one’s gains are greater than the IRC 121 exemption of $250,000 for a single person or $500,000 for married couples. Thus, many people are renting by themselves or through a property management company to preserve their tax efficient options. Below is a quick hit list of easy and inexpensive design ideas which may help you separate yourself from your competitors who have also listed their homes on the rental market. Importantly these improvements and/or expenses are either tax deductible against rental income or depreciable.