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emc011075, Master Tax Adviser
Category: Capital Gains and Losses
Satisfied Customers: 2187
Experience:  Master Tax Adviser and Enrolled Agent
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If I purchased an apartment k and put 400k into it

Customer Question

If I purchased an apartment for 900 k and put 400k into it and sold it for 1.5 k what would be my capital gain. I am in the highest tax bracket and I did it in NYC
Submitted: 5 months ago.
Category: Capital Gains and Losses
Expert:  emc011075 replied 5 months ago.
Hi. My name is ***** ***** I will be happy to help you. Was the apartment your primary residence in 2 out of 5 years?
Customer: replied 5 months ago.
Customer: replied 5 months ago.
Ok. It was an investment
Expert:  emc011075 replied 5 months ago.
Your capital gains will be 200K - settlement charges (closing cost). If you owned it for more than one year, it will be taxed at 20%, it you owned it for less than one year it will be taxed as ordinary income at 39.6%
Expert:  emc011075 replied 5 months ago.
When you said it was investment, did you rent it out? Or you hold it strictly for resale?
Customer: replied 5 months ago.
We held it
Expert:  emc011075 replied 5 months ago.
Ok. So there's no depreciation to worry about. 20% if long term gains (more than one year), 39.6% if short term gains (less than one year)
Expert:  emc011075 replied 5 months ago.
Do you have any questions? Is there anything else I can help you with today?And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

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