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TaxRobin
TaxRobin, Tax Preparer
Category: Capital Gains and Losses
Satisfied Customers: 13313
Experience:  15+ years in Tax preparartion as well as Instructor for tax law, theory, and application
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I am a widow and just retired. I am selling an old condo (rental

Customer Question

I am a widow and just retired. I am selling an old condo (rental property) for $320k and I paid 250k for it 10 years ago. It's costing me about 7k to make it ready to sell plus the real estate fees which they will receive after sell. I really don't want to buy any more rental property. I have a primary residence. Can I use this money to fix/repair my primary residence? Can I invest it in my 401k? How can i avoid the capital gains?
Submitted: 7 months ago.
Category: Capital Gains and Losses
Expert:  TaxRobin replied 7 months ago.
HelloYou can use the costs for the sale to reduce your capital gain but the sale, outside a 1031 Exchange, is not deferred. A 1031 is when you replace the property with other like property.Using the proceeds to fix your home,invest in a retirement account or any other purpose is not going to reduce your gain on the property you used for rental.When you sale rental you must pay tax on the difference in cost less depreciation plus improvements and the sale price less costs to sell.You will also have to recapture the depreciation you have claimed over the years.You are required to click a positive rating if I am to be credited with the response.You have to actively click on a rating and click submit. Smiley Faces or Stars.
Expert:  TaxRobin replied 7 months ago.
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Expert:  TaxRobin replied 7 months ago.
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