Yesterday morning, we sold one of our four rental units. And we sold it for about 50% more than we paid for it. Not bad.
Unfortunately, most of that will go to pay capital gains taxes. We don't know for sure how much the federal tax will be. The new administration promised to raise it to at least 20%. Yes, we who make WAY WAY less than $250,000 a year (even with this sale) will have a tax increase. At least that's what we've been promised.
The good news is we won't have to pay that for a year. So we can stick it in an interest-bearing account. And then, of course, pay tax on the interest as well.
I'm sorry. This time of year we get our copy of Tax Cut and start working on our tax return. And every year I get more and more annoyed. The only thing worse than having to pay all these taxes is having to put in so much WORK to do it. And now I have to do this year's taxes at the same time so I can estimate how much money to put aside.
I'm probably going to be in a very bad mood come April 15.