Biden Tax Changes on Industrial Real Estate Owners
At Bartlett Capital Group, we know the most important thing is how much money the seller puts in his/her pocket after the sale, not just the highest sale price.
Consider the following example:
You built your building in 2000 for $1,000,000 and have operated your business in the facility for the
past 20 years. You are planning to retire in the next few years, at which time you would like to sell the
building.
Presently, commercial real estate prices are at all-time highs and the building is worth $2,500,000.
Under today’s tax rule, you would pay federal capital gains tax of 15-20% on the gain of $1,500,000 =
$225,000 to $300,000.
Under Biden’s proposed capital gains tax plan for 2022 and beyond you would be subject to federal
capital gains tax of 15-39.6% on the gain for a total federal capital gains tax of $225,000 to $594,000!
Example Property
| Potential tax if you sell after 2021 | $594,000 |
| Potential Tax if you sell this year in 2021 | $225,000 |
| The amount of money you will save by calling Bartlett Capital group this year | $369,000 on Savings |
Even if you think it will appreciate in value for the next 5 years, would it make up for your tax bill doubling?
We can purchase your building in 2021, so you don’t need to worry about the proposed tax changes.
Please call us this by the end of Q2 2021 to discuss!
Also consider the following example from Bloomberg Tax:
We are here to help you get the maximum value for your business and your real estate. Please call us today, so we can help you take advantage of this opportunity before 2022!
