As 2019 draws to a close, many landlords, along with much of the rest of the population, are carefully considering their taxes for the year. As a landlord, you must report all the income you make on rent payments and pay taxes on it accordingly. For some landlords, that amount adds up more than expected--and like most people, you would prefer to maximize the return on your investment and minimize the amount you have to pay in taxes.
Much of all capital gains tax (CGT) that may be potentially due is never collected. Savvy rental property owners plan ahead, know the law, and they know to avoid paying capital gains tax on rental property. If they cannot avoid paying all of it, they avoid paying some of it, or they defer paying capital gains tax that may be due. In this article, we discuss what you can and should legally do to avoid paying CGT on your rental property.