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R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Capital Gains and Losses
Satisfied Customers: 263
Experience:  Over 20 Years experience in resolving tough tax cases
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How is the capital gains on a riverfront property tax calculated

Customer Question

How is the capital gains on a riverfront property tax calculated if the property was purchased over 10 years ago? How can I limit the amount of tax for my friend who is now in a nursing home? Barb in Middleton
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  Stephen G. replied 1 year ago.
Well, the capital gains is computed based upon the difference between his cost and the net sale price if it is residential property and his primary residence less $250,000 if single; $500,000. if married. If it's commercial property or residential rental property, then his original cost would be reduced by the depreciation. If there were major improvements, those would work to reduce the gain. If he's paying nursing home expenses, then his tax bracket will be reduced and the capital gains tax will be lower.You need to tell me more about the situation, both his circumstances and the property in order for me to narrow in on what may or may not be relevant.

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