How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Capital Gains and Losses
Satisfied Customers: 10172
Experience:  Have been providing Financial and Tax advice for 30 years.Concentration in Corporations, Estate, Income Tax and Business Planning
1929974
Type Your Capital Gains and Losses Question Here...
Lane is online now
A new question is answered every 9 seconds

I bought my condo in nov 2007 ,500. i'm about to sell it

Customer Question

I bought my condo in nov 2007 for 367,500. i'm about to sell it for 330,500. i lived in it for over a year (but under 2 years) before i moved out and made it a rental property. i currently owe 300,000 on the loan. will i have to pay capital gains on any income i get from the sale?
Submitted: 8 months ago.
Category: Capital Gains and Losses
Expert:  Lane replied 8 months ago.

Likely not, Jennifer. Capital gains is sales price MINUS basis (has nothing to do with the mortgage... the mortgage is just how you funded the purchase).

...

367500 - 330500 is a 37,000 loss.

...

The ONLY possibility for a gain would be what's called depreciation recapture.

...

That basis I mentioned above is purchase price PLUS any improvements you've made MINUS depreciation.

...

So if you made no improvements, the depreciation for the time you rented would have to be more than 37,000 for there to be any gain here.

Expert:  Lane replied 8 months ago.

...

I hope this has helped.

...

Please let me know if you have any questions at all.

...

If this HAS helped, and you DON’T have other questions … I'd really appreciate a positive rating (using the rating request, faces, or stars on your screen)

...

Otherwise, I won’t be credited for the work here.

...

Thank you!

Lane

I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security & Medicare, estate, corporate & tax advice since 1986

Related Capital Gains and Losses Questions