Capital gains

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Duck dogn

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How much tax would you have to pay on bare property owned for two years? Just say cleared 15 k. On property
 
1 good shot

1 good shot

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It should be called capital pains.
It should be around 25% depending on it's classification
 
P

pass-thru

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Unless your in the top bracket your capital gains rate will top out at 15%.

However, if you have enough capital gains income, you will get screwed on alternative minimum tax.
 
rem270

rem270

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So selling bare property you have to pay taxes on the gains you make off it? Must be different than selling a house. I've sold 3 in the past 3 years and never had to pay any gains on them. One was owned 6 years, one 3 years and one just a few days over two years. Anything over 2 years on a house no taxes have to be paid or at least that's what I'm told and I've never been questioned about it.
 
TNCharlie

TNCharlie

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rem270":2pmbascx said:
So selling bare property you have to pay taxes on the gains you make off it? Must be different than selling a house. I've sold 3 in the past 3 years and never had to pay any gains on them. One was owned 6 years, one 3 years and one just a few days over two years. Anything over 2 years on a house no taxes have to be paid or at least that's what I'm told and I've never been questioned about it.

I am in no way a tax expert or accountant. This is what I remember from a few years ago.

Capital gains on your primary residence are not taxable if 1) you live in the residence for a prescribed length of time - 2 years sounds right and 2) you purchase another residence within a prescribed time (1 year?) of value equal to or greater then the sale price of your old residence. I think that if you sell your residence and purchase another of lesser value, you are taxed on the difference.

So, yes, selling your residence has different rules than other property.
 
D

Duck dogn

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Thanks they also have a rule like someone said about selling and buying a house in the same year. You don't have to pay taxes just roll investment over but I didn't know at time of sale! But I did by higher price land in the same year so that crap get confusing!
 
Wildcat

Wildcat

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TNCharlie":3spv2dfd said:
rem270":3spv2dfd said:
So selling bare property you have to pay taxes on the gains you make off it? Must be different than selling a house. I've sold 3 in the past 3 years and never had to pay any gains on them. One was owned 6 years, one 3 years and one just a few days over two years. Anything over 2 years on a house no taxes have to be paid or at least that's what I'm told and I've never been questioned about it.

I am in no way a tax expert or accountant. This is what I remember from a few years ago.

Capital gains on your primary residence are not taxable if 1) you live in the residence for a prescribed length of time - 2 years sounds right and 2) you purchase another residence within a prescribed time (1 year?) of value equal to or greater then the sale price of your old residence. I think that if you sell your residence and purchase another of lesser value, you are taxed on the difference.

So, yes, selling your residence has different rules than other property.

He's right. But you need to talk to a CPA to get this 100% because each case is different.

Anybody seen closed and boarded up business properties WITHOUT any for sale sign?? There are several reasons that business went out of business there but ever wondered why don't the people sell them or open up another business. Those are investment properties. Sometimes it's cheaper to simply let them run down then pay the property tax year aftert year then sell them and pay capital gains taxes. If this new tax plan goes though with lower rates on capital gains then we will see a lot of those properties being sold, fixed up and started as another business.
 
F

fishboy1

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Jan 13, 2003
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Wildcat,
Our town is FULL of those boarded up commercial properties. I hope they start being sold so our little down town can start to recover.

Guys, be careful not to confuse the personal residence exemption (lived in 2 of last 5 years) for the 1031 exchange.
Get a good accountant to help you stay within the rules. Worth every penny you pay them.
 

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