When selling rental property,the difference between the selling price and the purchase price is ________ if you have held the property for more than two years.

Question

Quizplus · Accepted Answer

The difference between the selling price and the purchase price of a rental property is known as capital appreciation. If the property has been held for more than two years, this appreciation is taxed at a capital gains tax rate, which is typically lower than the personal income tax rate.

When Selling Rental Property,the Difference Between the Selling Price and the Purchase