2010 Better Year To Sell Than 2011?
June 7th, 2010 categories: For Sellers, The Market
If you are considering selling a Honolulu home or condominium that you have owned for a longtime, then 2010 may be a better year for you to sell than 2011. Economist Arthur Laffer wrote an opinion piece in today’s Wall Journal Street Journal online that talks about the impact of not renewing the Bush tax cuts by the end of the year.
“On or about Jan. 1, 2011, federal, state and local tax rates are scheduled to rise quite sharply. President George W. Bush’s tax cuts expire on that date, meaning that the highest federal personal income tax rate will go 39.6% from 35%, the highest federal dividend tax rate pops up to 39.6% from 15%, the capital gains tax rate to 20% from 15%, and the estate tax rate to 55% from zero. Lots and lots of other changes will also occur as a result of the sunset provision in the Bush tax cuts.”
CLICK HERE TO READ THE ENTIRE WALL STREET JOURNAL ARTICLE
If Congress and the President don’t renew these cuts, you are looking at a minimum of a 33% increase in the capital gains tax! If the State of Hawaii increases the Hawaii capital gains tax, you could experience a huge tax hit on highly appreciated real estate. Here’s my point, given the relative strength of the Honolulu real estate market and the potential increase in capital gains taxes, it may take several years of additional market appreciation to net the same amount of money you could get by selling in 2010. Think about it.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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I will need to find out more about that. Would it even make sense to sell property next year?