Real Estate Investment Basics: Capital Gains Tax

One of the big concerns of real estate investors is called Capital Gains Tax.

When a property is purchased, the cost of the property plus expenses are called the 'basis' cost of the property.

During the period of ownership, the basis can be adjusted up based on expenses incurred, like home improvements, or down due to claiming depreciation on income tax. This adjustment is called the adjusted basis.

Upon the subsequent sale of the property, if the net gain on the property exceeds the adjusted basis, Capital Gains taxes may be required on that gain amount, and can be handled in various ways. Portions of the gain can be excluded from capital gains tax. A person's main residence may not require payment of capital gains taxes The most central issue is whether or not the property was owned for the short term (1 year or less), or the long term (over 1 year).

Short term capital gains are normally taxed at the normal income tax rate based upon your tax bracket, which is a higher amount than what is required for long term capital gains. Long term capital gains are taxed at a rate between 8% and 20%.

This page is meant to introduce the topic of capital gains taxes only, because people always ask about it. For a complete understanding, visit the IRS website and read instructions for Schedule D, Capital Gains and Losses,

or consult a financial planner, tax advisor or CPA.

Example Ordinary and Capital Gains rates from 2014

*** rates valid in 2014

High Value Real Estate Investments

3020 Brantner, St Louis $900,000

None

0 Baths
20071181 MLS
ACTIVE Status

7421 Mexico Road, St Peters $1,500,000

FULLY LEASED!! Excellent income property with return on investment of 7.6% including a 5% vacancy! Leases expire in 2-5 years. Full brick professional building with lo...

0 Baths
20068906 MLS
ACTIVE Status

815 Ann Avenue, St Louis $6,300,000

Lafayette Lofts is a 36-unit multi-family renovation of a former school in the heart of Soulard. The building boats 3 floors, extra wide marble corridors and original har...

0 Baths
20068387 MLS
ACTIVE Status

308 Hawthorne Drive, Union $1,400,000

*** GREAT PRICE & NOW VACANT *** SUPER GREAT BUSINESS LOCATION & OPPORTUNITY *** US HIGHWAY 50 FRONTAGE *** ZONED B-2 HIGHWAY BUSINESS DRISTRICT *** 2..09 ACRES TOTAL **...

0 Baths
17080436 MLS
ACTIVE Status

7700 Natural Bridge, St Louis $1,200,000 ▼

Own a piece of Normandy history. The City has outgrown this space and is moving out. This is a great opportunity for a developer, investor, or entrepreneur. Would make a ...

0 Baths
20050529 MLS
ACTIVE Status

1000 Mid Rivers Mall Drive, St Peters image

1000 Mid Rivers Mall Drive, St Peters $935,000

Beautiful building approxximately 10,000 sq ft. Great location with high traffic count, 2 acres at corner light of Mid Rivers Mall and Willott. The main level has a recep...

0 Baths
20065168 MLS
ACTIVE Status

6224 Sunshine Unit #28, St Louis $975,000

Highly desirable location in St. Louis Hills! Located near major bus routes, grocery stores and much more! This is a total of 8 units: 2 Buildings, with 4 units in each b...

0 Baths
20064723 MLS
ACTIVE Status

1788 U.S. Highway61 South South Hwy, Festus image

1788 U.S. Highway61 South South Hwy, Festus $1,765,000 ▼

THIS IS A HIGHLY UNUSUAL AND DIFFICULT TO FIND WAREHOUSE FACILITY OR MANUFACTURING 35,000 tenable space plus 1,400 sq.ft Modular office (not part of 35,000 sq. ft) 16ft....

0 Baths
20059190 MLS
ACTIVE Status

265 Hwy Ab, Lone Oak Apartments, St Clair image

265 Hwy Ab, Lone Oak Apartments, St Clair $1,350,000

Multiple building apartment complex, with single family home. Additional lots approved by city of St. Clair for 8 additional buildings. Older buildings had new roofs, si...

0 Baths
20056569 MLS
ACTIVE Status

8300 North Lindbergh, Florissant $2,250,000

INVESTMENT OPPORTUNITY -Caliber Collision, a National Tenant -22,010 s/f (4 separate buildings) on 1.29 acres -NN Lease, $226,800 (September 2019-September 2014) -47,...

0 Baths
20054543 MLS
ACTIVE Status

9318 Phoenix Village Parkway, O'Fallon image

9318 Phoenix Village Parkway, O'Fallon $925,000

GREAT INVESTMENT OPPORTUNITY!! 1031 EXCHANGE 8% CAP RATE All brick single story office building located within Phoenix Village Office Park at WingHaven. This 4994 SF buil...

0 Baths
20052178 MLS
ACTIVE Status

10101 Cabana Club Drive, St Ann $939,000 ▼

Investment Opportunity in St. Louis County, Welcome to Cabana Place Apartments. Beautiful Brick Building with 20 Modern One-Bedroom Apartments in Park like setting with i...

0 Baths
20052185 MLS
ACTIVE Status

2416 West Meyer Road, Wentzville $2,664,129

A viable 5.56 acre tract of land at the corner/intersection of West Meyer Road and North Point Prairie.Currently unincorporated St. Charles with possibility to annex into...

2 Beds
2 Baths
20050916 MLS
ACTIVE Status

1755 Larkin Williams Unit #1761 & 1781, Fenton image

1755 Larkin Williams Unit #1761 & 1781, Fenton $2,109,800

This is a high quality multi-tenant office/warehouse and service center building, with one full (corner) office suite, and six other suites with variable office and varia...

0 Baths
20044652 MLS
ACTIVE Status

2818 South Point Prairie Road, Wentzville image

2818 South Point Prairie Road, Wentzville $1,229,000

16.2 acres estate w/ 2 HOMES, 2 stry Barn, WALKING/RIDING TRAILS, 2 STOCKED PONDS, spring fed stream! 2400SF Guest House/Income property w/ NEW ROOF/SIDING/GUTTERS & FASC...

4 Beds
3 Baths
20043168 MLS
ACTIVE Status

2525 Hampton Avenue, St Louis $1,850,000

Looking for the perfect city living location, you found it. This ½ acre lot at the corner of Hampton/Columbia between Clifton Heights and the Hill neighborhoods boasts ev...

0 Baths
20034714 MLS
ACTIVE UNDER CONTRACT Status

1075 Pickles Ford, St Clair $1,075,000 ▼

Historic, romantic 4-bed Adirondack-style hunting lodge situated on scenic bluff with gorgeous views of the Meramec! Includes 5+ acres aged vineyards, huge historic pole ...

4 Beds
3 Baths
20030669 MLS
ACTIVE Status

4160 Ehlmann, St Peters $2,840,000 ▲

This light industrial building with a 30K SF open floor span is located in the nationally recognized, business friendly city of St. Peters and can serve as a support site...

0 Baths
20019509 MLS
ACTIVE Status

103 Church, O'Fallon $1,175,000

Investment Property For Sale. Excellent Opportunity for Owner User with built in Tenants. Approximately 12, 116 sf Multi-Tenant Office Building Situated on .82 acres. Pr...

0 Baths
20018947 MLS
ACTIVE Status

4484 West Pine Boulevard, St Louis image

4484 West Pine Boulevard, St Louis $2,400,000 ▼

Great opportunity for new development or renovation of this historically known property, The Butler House. Located in the fastest growing region of St. Louis City and in...

0 Baths
20012614 MLS
ACTIVE Status

1133 Pine, St Louis $1,450,000

Publicity Building in Downtown St. Louis now available for Sale. The 5-story, 28,122 Square Foot building is ready for redevelopment. The floor plates (which measure ...

0 Baths
20012491 MLS
ACTIVE Status

5711 South Lindbergh, St Louis $3,500,000 ▼

Now for sale or for lease at 9.00 PSF NNN Below market prime retail property at 5711 South Lindbergh Boulevard. This subject property was originally built as a Rothman Fu...

0 Baths
20007378 MLS
ACTIVE Status

Weier Road, Pevely $1,008,000

The property is perfect for a new subdivision or farm. Sale includes four different adjoining parcels totaling 144 acres. The parcels are 11-6.0-24.0-0-000-011, 11-6.0-24...

0 Baths
20005622 MLS
ACTIVE Status

124 Highway At & 132 St Mary's Rd, Villa Ridge image

124 Highway At & 132 St Mary's Rd, Villa Ridge $12,000,000

Excellent traffic counts (49,476 on I-44; 15,210 on Hwy 100; 4,152 on MO Hwy AT). Visible from I-44 with almost one mile of I-44 frontage. Located within Unincorporated...

4 Beds
2 Baths
20005716 MLS
ACTIVE Status

122 +/- Acres. Hoff Road, O'Fallon image

122 +/- Acres. Hoff Road, O'Fallon $7,370,400

Great opportunity available! 122.84 Acres of I-2 heavy industrial land located in the corridor of O'Fallon, Missouri in a perfect location. This tract of land offers a va...

0 Baths
20003563 MLS
ACTIVE Status

10333 Business 21, Hillsboro $3,500,000

AKA-The Russell House/Inn/Brewery is now available for purchase.Situated on 4.45 acres in the "Heart of Jefferson County," Hillsboro Mo.Extensive Renovations, and additio...

0 Baths
20005132 MLS
ACTIVE Status

3801 North Highway 94, St Charles $3,782,502

83+ Acre Development Opportunity the skies the limit! This property buts up to a proposed new St Charles County Park. Zoning potential for Industrial, Commercial, Agricul...

0 Baths
20003849 MLS
ACTIVE Status

1917 South 9th, St Louis $1,125,000 ▼

Building and Parking Lot. This is Soulard Preservation Hall. Event Space / Restaurant / Office / Bar / Venue / Micro Brewery. Located 3 blocks south of Soulard Market on ...

0 Baths
20003878 MLS
ACTIVE Status

5946 Highway 47, Union $2,999,710

Beautiful custom built home sitting on 85 acre estate. Easy access from Hwy 47, this property is a perfect getaway from the "BIG CITY", or your private secluded home jus...

2 Beds
3 Baths
19090094 MLS
ACTIVE Status

198 Wolfrum Rd 39.93 Ac, Weldon Spring image

198 Wolfrum Rd 39.93 Ac, Weldon Spring $7,740,111

High visibility, High Traffic count. Located in St. Charles County, the fastest growing County in the St. Louis Metro Area. This natural property is located in Weldon Spr...

0 Baths
19089557 MLS
ACTIVE Status

707 Goodfellow, St Louis $1,500,000

Wow, Wow, Wow!!Fabulous location at the corner of Delmar Blvd. and GoodFellow with the vast amount of frontage sitting on Delmar Blvd. This prime commercial property is ...

0 Baths
19085674 MLS
ACTIVE Status

2446 Highway Z, Wentzville $11,250,000

125 Spectacular acres in the heart of Wentzville. Commercial possibilities on Hwy Z & Hwy N. Private, gated entrance, this rare find includes a custom executive Stone hom...

4 Beds
3 Baths
19072909 MLS
ACTIVE Status

1624 Highway Z 9.67, Wentzville $2,527,351

ALL PARTIES UNDERSTAND THAT THE HOUSE AND ALL OUTBUILDINGS ARE BEING SOLD "AS IS". NO REPAIRS OR WARRANTIES. commercial site

2 Beds
1 Baths
19067926 MLS
ACTIVE Status

11124 South Towne, St Louis $2,750,000 ▼

Class A office building in great condition with convenient location!! Easily accessible off of Lindbergh near the intersection of I-55 and Lindbergh. Building has nice ...

0 Baths
19065930 MLS
ACTIVE Status

411 Meramec Station Road, Ballwin $7,500,000

8.5 acres for rezone / redevelopment overlooking Hwy 141 just south of Manchester Rd; Meramec Station Rd stoplight signalized intersection perfectly aligned for a new dev...

0 Baths
19042815 MLS
ACTIVE Status

15970 Manchester Road, Ellisville $4,700,000

*These TWO Parcels could be sold TOGETHER OR SEPERATED. Locator Number 23T44053 AND Locator Number 23T440383 Sales *Price for both Parcels is $4,700,000. *Two Parcel lo...

0 Baths
19041825 MLS
ACTIVE Status

Veterans Memorial, O'Fallon $1,900,000 ▼

Amazing Development Opportunity! 22+/- Acres with frontage along I-70 south outer road, and also along Veterans Memorial Pkwy. Located next to new interstate ramp for hu...

0 Baths
19033662 MLS
ACTIVE Status

108 North Eatherton Road, Chesterfield image

108 North Eatherton Road, Chesterfield $3,086,226

This is a once in a life time to own 14.17 acres in Chesterfield Valley,Priced for the land at $5/sq.ft. the buildings are thrown in for free.This is an operational nurse...

0 Baths
19025880 MLS
ACTIVE Status

215 Josephville Road, Wentzville $999,288 ▲

10.67 Acre Development Site with an additional 6.5 acres contiguous and available. Unincorporated St. Charles County Located directly across from General Motors Pla...

0 Baths
19015733 MLS
ACTIVE Status

102 East Springfield Avenue, Union image

102 East Springfield Avenue, Union $950,000

*** CLASS A PROFESSIONAL OFFICE BUILDING *** GREAT INVESTMENT OPPORTUNITY IN GROWING COMMUNITY OF UNION, MO *** UNION BEING HOME TO THE COUNTY SEAT OF FRANKLIN COUNTY ***...

0 Baths
19013779 MLS
ACTIVE Status

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