Renting out houses can generate a lot of income over the years.  Whether it is a really bad renter or you want to simplify your life, one day you will decide it is time to stop being a landlord.  In the case of houses or condos that you do not live in yourself, expect to pay Capital gains Taxes.  There doesn't seem to be a way around it. So brace yourself. It is not going to be a small bill.  Capital gain taxes are paid on the difference between what you paid for the property and what you sell it for.  Since you likely depreciated the property over the years to save on income taxes, what you are considered to have paid for the House has been shrinking.  The taxman gets his do one way or another.

The amount of taxes you will pay is in part depended on your income.  Put off selling until you have a lean year.  For example, wait until you have retired. If you have the luxury of picking one to sell and had multiple properties, you may be able to lower the tax burden by selling only one per year.



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