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Jason M. Tyra, CPA
Jason M. Tyra, CPA, Certified Public Accountant (CPA)
Category: Capital Gains and Losses
Satisfied Customers: 178
Experience:  Principal at Jason M. Tyra, CPA, PLLC
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I am a Canadian Citizen & bought a condo in vegas a few

Customer Question

I am a Canadian Citizen & bought a condo in vegas a few years ago. We are thinking of selling it now & the price has gone up considerably 60%+-. What kind of taxes ?? if any am I going to face if sold?
Submitted: 8 months ago.
Category: Capital Gains and Losses
Expert:  Jason M. Tyra, CPA replied 8 months ago.

Hi Raymond:

Assuming your condo is held as a rental property, you will be subject to long term capital gains taxes on your sale unless you elect to defer gain under Section 1031. The Section 1031 rules allow you to defer gain by purchasing another property of like kind within a certain period of time after the sale.

Customer: replied 8 months ago.
Was not a rental. We just used it for ourselves & are not planning on buying another property. How much % is the taxes?
Expert:  Jason M. Tyra, CPA replied 8 months ago.

Did you use it as your principal residence at any time during the last five years?

Customer: replied 8 months ago.
No not as a principal residence just as a vacation home. Some years we came down up to 12 times a year but most years 4-6 times from 1-2 weeks at a time.
Expert:  Jason M. Tyra, CPA replied 8 months ago.

Ok, then you wouldn't qualify to use the exclusion on gain for sale of a principle residence. Your gain on sale would be subject to long term capital gains tax (probably at 15%).

Customer: replied 8 months ago.
15% of total sale or just portion over what we paid?
Expert:  Jason M. Tyra, CPA replied 8 months ago.

15% on the amount that the the sales price exceeds your adjusted basis, AKA your gain on sale

Expert:  Jason M. Tyra, CPA replied 8 months ago.

So, for example, if you paid $100k and sold it for $150k (and had no adjustments for depreciation or casualty losses in prior years), then the tax would only apply to the $50k difference between purchase price and selling price.

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