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If you have been filling out your taxes properly every year (with Schedule E), this shouldn't be a problem at all.
120k - 60k - buying/selling expenses - capital improvements + allowed depreciation - previously unallowed Schedule E expenses = capital gain
If filling out Form 4797 or Schedule E frightens you, you need to talk to a tax professional. There is a huge amount of paperwork in calculating this number.
If you have been filling out your taxes properly every year (with Schedule E), this shouldn't be a problem at all.
120k - 60k - buying/selling expenses - capital improvements + allowed depreciation - previously unallowed Schedule E expenses = capital gain
If filling out Form 4797 or Schedule E frightens you, you need to talk to a tax professional. There is a huge amount of paperwork in calculating this number.
Can you take this in english please?
Or just give me a number that should be in the neighborhood of what it would be if i sell for this price
If you have been filling out your taxes properly every year (with Schedule E), this shouldn't be a problem at all.
120k - 60k - buying/selling expenses - capital improvements + allowed depreciation - previously unallowed Schedule E expenses = capital gain
If filling out Form 4797 or Schedule E frightens you, you need to talk to a tax professional. There is a huge amount of paperwork in calculating this number.
If he deducted any building improvements in a previous tax year, he cannot do it again when he sells the house... also if it's been under 2 years, there are other issues.
I have to wonder how REAL this scenario is. Is this a foreclosure you bought? Otherwise I dont see how you got that sort of appreciation in 2 years.
I think there is an exemption of $200 K or $250K on sale of personal real estate. You may not have a cap gain tax at all. Not sure, going by memory of what I read. Unfortunately, I've never had to worry about such gains!
I think there is an exemption of $200 K or $250K on sale of personal real estate. You may not have a cap gain tax at all. Not sure, going by memory of what I read. Unfortunately, I've never had to worry about such gains!
He stated it was a second home. No exemption for cap gains on that.
If he deducted any building improvements in a previous tax year, he cannot do it again when he sells the house... also if it's been under 2 years, there are other issues.
I have to wonder how REAL this scenario is. Is this a foreclosure you bought? Otherwise I dont see how you got that sort of appreciation in 2 years.
crazynip, where did he state "2 years"? He could have held it for a decade or more. Besides, if it is a second home, there is no limit on how long you have to hold the property, since the transaction is a taxable event (and not exempt like personal residences).
If the poster is asking such a rudimentary question, I am confident that he has not been filling out Sch E properly every year to determine his basis.
Sorry, Johan, you have provided only two of several hundred numbers that are required to give you an exact amount. Even then, your tax rate is dependent on what other income you earned. If you held the property for a long time and kept poor records, this could be a gargantuan task.
It looks like you are headed to a tax advisor with a shoebox full of receipts and a stack of documents to have sorted out at an hourly rate.
I understand that it is hard to answer such a question. But are there not a aproximate tax percentage?.
As one said, i am not a US citizen. But where i come from i know exactly how much i will pay in taxes when i sell some real estate. It is sale pris minus price i bought it, minus the works i done = an amount and a certain % on that, finished.
If he deducted any building improvements in a previous tax year, he cannot do it again when he sells the house... also if it's been under 2 years, there are other issues.
I have to wonder how REAL this scenario is. Is this a foreclosure you bought? Otherwise I dont see how you got that sort of appreciation in 2 years.
You can say that, i got it for a real bargain.
It will be two years this summer. is it worth to wait to sell?
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