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levr
levr, Tax Advisor
Category: Capital Gains and Losses
Satisfied Customers: 28084
Experience:  Working for a large tax preparation service
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OUR BUSINESS PROPERTY OF 13 ACRES WAS PURCHASED IN 1988 FPR

Customer Question

OUR BUSINESS PROPERTY OF 13 ACRES WAS PURCHASED IN 1988 FPR $153,458.TODAY AS OF 9-17-2015 WE A M LEGITAMITE CONTRACT FORMPURCHASE AR $ 1,900,000. WE WANT TO ACCEPT TJIS OFFER AS THE WIFE IS 79 AND I AM 82. WE ARE AWARE THAT BESIDES THE $100,000 WE HAVE P[UT INTO THE PROPERTY SINCE WE BOUGHT IT, THERE IS A NOTICABLE CAPITAL GAINS TAX FACING US. FURTHER THE TAX PEOPLE WE HAVE THUSM CONTACTEDM ARE NOT MNECCESARILY THE BRIGHTEST BULBS IN THE CHANDILER. WE ARE RWA TO GET IN CONTACT WITH A FIRM THAT HAS THE REQUISET EXPERTISE IN THIS SITUATION TO GUIDE US IN THE MINIMIZATIOM OF THIS ONEROUS TAX BITE.
JAMES PAGLIONE RES(###) ###-####CELL(###) ###-####FOR ME AND(###) ###-####FOR SALLY MY WIFE. CERTAINLY WE DONT EXPECTOR WANT FREE LEGAL HELP. WE NEED THE BEST QUALIFIED TEAM MEMBERS AND WE WILL COMPENSATE ACCORDINGLY.
YOUR PROMPT [PROFESSIONAL REPLY IS AWAITING BY JIM & SALLY THANKS IN ADVANCE
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  levr replied 1 year ago.

Here are some estimates...
Your basis is the original purchase price $153,458

and adjusted basis is $153,458 PLUS $100,000 (improvements) MINUS (accumulated depreciation) PLUS (selling expenses - Realtor fees, etc) = $253,458
So your estimated gain is

$1,900,000(assumed selling price) MINUS $253,458 (adjusted basis) = ~$1,650,000

.

So if that is your ONLY income - following are estimated tax liability.

Regular Tax:$234,000

Alternative Minimum Tax:$79,640

Net Investment Tax:$53,200

Total estimated tax liability - $366,840

These calculations are based on information your provided, joint filing status and standard deductions.

Please verify if you have any additional income or deductions - and I will adjust estimations.

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