We have a 2nd house that we bought and renovated over the last couple years. My wife and I were going to downsize and move into it but recently decided just to sell it off.
We own it free and clear and do not what the hassles or renting it out.
I need to know what the implications will be to our Taxes after we sell it.
Will this be seen as a Capital gain or what ??
Sat Sep 24, 2011 11:09 am
coaster Senior Advisor
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Yes. Your expenses are deductible. I hope you kept good records.
More information on the IRS website; look for Publications 550, 523, 544; and Tax Topics 701 and 703; and the instructions for Form 1040 Schedule D.
You're fortunate to have a gain on a real-estate sale.
~Tim~
Sat Sep 24, 2011 5:09 pm
Katmandu New Member
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Thanks coaster.
It was a HUD foreclosure that we bought real cheap. Pretty lucky.
Mon Sep 26, 2011 12:11 am
Abe New Member
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Fri Nov 11, 2011 3:14 pm
oldguy Senior Member
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quote: It was a HUD foreclosure that we bought real cheap. Pretty lucky.
You've owned it for more than one yr so your gains are longterm capital gains. Add your original cost, your reno costs, all improvements cost, real estate commssions, etc, and subtract that from your net sale. If tere is a profit, the gains tax is 15% MAX of that. Or, if you lost some money on it, that is a tax deduction.
Fri Nov 11, 2011 3:32 pm
Katmandu New Member
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quote:Originally posted by oldguy
quote: It was a HUD foreclosure that we bought real cheap. Pretty lucky.
You've owned it for more than one yr so your gains are longterm capital gains. Add your original cost, your reno costs, all improvements cost, real estate commssions, etc, and subtract that from your net sale. If tere is a profit, the gains tax is 15% MAX of that. Or, if you lost some money on it, that is a tax deduction. Thanks for your reply.
