Smart Ways to Reduce Capital Gains Taxes When Selling Real Estate

What Every Homeowner and Investor in Westlake Village, Thousand Oaks, and the Conejo Valley Should Know

When you sell a home, investment property, or portfolio asset, one of the biggest financial surprises can come after closing — capital gains tax. Fortunately, there are legitimate ways to reduce your taxable gain and keep more of what you’ve earned.

According to SmartAsset’s latest financial insights, the key is understanding how investment-related expenses, cost-basis adjustments, and selling costs can work in your favor.

1. Deductible Investment-Related Expenses

If your property was used as a rental or investment, certain expenses can offset taxable gains. These may include:

• Advisory or property management fees

• Margin or investment interest

• Legal, bookkeeping, or professional planning costs

For example, if you own a rental in Thousand Oaks or Agoura Hills, and you’ve paid a property manager, CPA, or attorney, those expenses could factor into your overall investment deductions.

📘 Learn more: IRS Publication 527 – Residential Rental Property

2. Increasing Your Cost Basis

Your cost basis determines your taxable gain. It’s not just what you paid for the property — it includes certain improvements and transaction costs.

Think of it like this:

If you sell for $1.5 million, you’ve reduced your taxable gain by $250,000.

That kitchen remodel, landscaping upgrade, or new dock at your Westlake Island property may not just make your home more beautiful — it may also save you at tax time.

📗 Learn more: IRS Topic 409 – Capital Gains and Losses

3. Selling Costs That Count

Many homeowners forget that the cost of selling can directly reduce taxable gain.

Typical examples include:

• Real estate commissions

• Escrow and title fees

• Staging and professional photography

• Transfer taxes and marketing expenses

If you listed your property in Oak Park, North Ranch, or Calabasas, those marketing investments and professional services aren’t just cosmetic — they’re strategic deductions that help lower your taxable profit.

📘 Related reading: How Selling Costs Affect Your Home’s Net Proceeds

Why Planning Ahead Matters

Capital gains tax isn’t something to think about after the sale — it should be part of your strategy before listing. Timing, documentation, and guidance from both your real estate advisor and tax professional can have a major impact on what you keep.

At Avant ONE Real Estate, we work side by side with your CPA, financial advisor, and escrow team to help ensure every deduction, credit, and cost adjustment is properly accounted for.

Your Local Advantage: Knowledge + Strategy = Savings

Every home and every client deserves a tailored strategy. Whether you’re:

• Selling your longtime residence in Westlake Village,

• Transitioning to your next lifestyle move in Lake Sherwood, or

• Managing investment properties across Ventura County,

our team helps you navigate the financial side of real estate with the same precision we bring to marketing, negotiation, and representation.

Ready to Keep More of What You’ve Earned?

Capital gains taxes are often the most controllable drain on wealth — but only if you plan ahead. If you’re thinking about selling, downsizing, or reinvesting, now is the time to get informed, prepared, and positioned for success.

💡 Here’s how Avant ONE can help:

• Review your property’s potential tax exposure with your financial team

• Strategize home updates that increase both market appeal and cost basis

• Coordinate your sale for the highest net proceeds — not just the highest price

💬 Thinking About Selling? Let’s Talk Strategy.

Selling real estate isn’t just about finding a buyer — it’s about protecting your equity.
At Avant ONE Real Estate, we do real estate differently. We put you first, always.

This content is intended for informational and educational purposes only and should not be considered legal, tax, or financial advice. Readers are encouraged to consult with their own qualified tax professionals, attorneys, or financial advisors for advice specific to their individual circumstances. Avant ONE Real Estate, its broker, and agents do not provide legal or tax services, and no portion of this article should be interpreted as such.

All information is believed to be accurate as of the date of publication, but laws, tax codes, and interpretations are subject to change without notice. Examples are provided solely for illustrative purposes and may not apply to every situation.

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