Steps For Minimizing Capital Gains Tax On Ranch Land In Colorado

Steps For Minimizing
Capital Gains Tax On
Ranch Land In
Colorado

It is every investor’s duty to pay capital gains
tax on ranch land in Colorado to the state and
federal government. Tax rates may vary from
one state to another, but usually it’s between
0-20% and depends on the period of time it
was held.
2

In this regard, tax rates are
lower for long-term capital
gains than short-term
capital gains. Nonetheless,
taxes on capital gains can
drain you of your financial
stability and deprive you of
investing in your other
projects.
Here’s how you can
minimize your taxes on
capital gains on ranch land:

Realize your losses for a particular year to
offset the gains incurred in that year. If your
net losses are excessive, you can use this to
cancel taxes on gains.
4

Families who change houses frequently
avoid major taxes. If you’ve been living in
the same household for a very long time,
you may suffer from more taxes.
5

Using the 1031 Exchange, you can invest the capital
from selling a property to another similar property
and avoid taxes. This, however, is a complicated
section of the tax code and you may need the help
of a realty advisor to avail its benefits.
6

You can use stock exchanges for avoiding
taxes on capital gains through Exchange-
Traded Funds (ETF). As the old stocks move
out of the index and new ones come in, the
investor cost basis is transferred to new
securities.

Reinvest your dividends in other underperforming
investments rather than the same investments
that paid those dividends. This will help hold on to
the performing investments for longer time
periods and reduce the taxes on them when you
eventually decide to sell them.
8

These are a few tips
for minimizing taxes
on capital gains. For
more information
regarding taxes and
the 1031 Exchange,
get in touch with a
realty advisor.

THANK YOU
Solid Rock Realty Advisors, LLC
406-582-1264
CHRIS@SOLIDROCKPROPERTY.COM
https://www.solidrockproperty.com/