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PhillipB EA
PhillipB EA, Accountant
Category: Capital Gains and Losses
Satisfied Customers: 704
Experience:  Enrolled Agent with 8 years experience in tax return preparation, representation, and taxpayer consultation
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I recently sold real estate ,000.00 purchased in 1975

Customer Question

I recently sold real estate for 440,000.00 purchased in 1975 for 95,000.00 plus or minus. My CPA has calculated taxes and I do not trust his figures. I initially found a 6,000.00 error myself. I don't think he has done these often because he really seems to know only some basic information and that is sketchy. He has papers prepared for me to pay a total of 90,000.00 capital gains tax. DO YOU THINK THIS MAY POSSIBLY BE CORRECT AND IF YOU DON'T WHAT WOULD YOU ADVISE I DO???? Thank you very much.
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  PhillipB EA replied 1 year ago.
Thank you for using JustAnswer.com. I will do my best to provide you a clear and concise answer to your tax question based on the information that you have provided. Based on the numbers you have provided, it is possible that the capital gain tax would be that much. There are a lot of factors that can effect the capital gain, for example the depreciation that may have been deducted on the property is taxable at your ordinary income rate -- which is generally higher. Your other income will also have an effect on the capital gains tax. From a quick calculation, the capital gains tax on 345,000 dollars at a capital gains rate is 23.8% (depending on your total income, some or all of the gain would have the healthcare surtax of 3.8%. 20% + the additional 3.8% tax) is over 80k. State taxes would very possibly bring the total to 90k plus.I could give a more precise figure, if I know total income tax depreciation on the property and your total estimated other income for the year. Let me know if there is anything else I can do for you.
Customer: replied 1 year ago.
This is quite helpful. I may come back later with more information. Thank you very much.
Expert:  PhillipB EA replied 1 year ago.
My pleasure. I'll be here. If this ends up being sufficient, please remember to rate my performance between OK and Excellent service so that I will get credited for my work today. Thank you.
Expert:  PhillipB EA replied 1 year ago.
Let me know if there is anything else that I can do.
Thanks

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