Capital Gains and Losses
Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP
First step - to calculate the gain - that is
(selling price) MINUS (basis)The basis is generally your purchase price - assuming the property was purchased.
That gain is a long term capital gain (and is taxes taxed at reduced rates) if the property was owned at least one year.If you sold on installment - when payments are spread over seven years - we need to apportion a part of the payment as interest - that part is taxed as ordinary income.Capital gains are taxed at reduced rates - depending on your total income - it might be zero percent, 15% or 20%.I will help you to estimate your tax liability if needed.