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Lane
Lane, JD, CFP, MBA, CRPS
Category: Capital Gains and Losses
Satisfied Customers: 10097
Experience:  Have been providing Financial and Tax advice for 30 years.Concentration in Corporations, Estate, Income Tax and Business Planning
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I bought a house in NC in 2006 which I thought would be my

Customer Question

I bought a house in NC in 2006 which I thought would be my primary residence. I did not get the job I thought I would have. I paid more than I will be getting and will not make a profit. Where do I atand on capitol gains taxes?
Submitted: 6 months ago.
Category: Capital Gains and Losses
Expert:  Lane replied 6 months ago.
Hi,...If you are selling for a loss there will be no capital gain, hence no capital gains tax....Capital Gain = (sales price - purchase price)...So, again if that's a negative number (although you can't take a loss on a personal residence) there will be no gain....NOW, if this ended up not being used personally, it's an investment by default... and no longer a personal use asset....In THAT case you would have a capital loss....UNLESS you used the house as a rental ... in which case we would have to throw depreciation into the mix to calculate the gain.
Expert:  Lane replied 6 months ago.
SO, to recap ... if you sold for a loss and never used the house as a residence, there's no gain to tax and a capital loss....If you used as a rental, then the the depreciation will lower the basis, so you MAY have a gain (or less loss than simply subtracting your purchase price from your sales price)....If this IS considered a second home, then it's "personal use property" and any loss is not deductible.
Expert:  Lane replied 6 months ago.
If you'd like to give me the numbers and the details, I can run them for you
Expert:  Lane replied 6 months ago.
Please let me know if you have any questions at all....If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit”)…I receive no crediting at all unless you rate in this way....Thank you!Lane……I hold a law degree (JD, Juris Doctorate), 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, both for-profit and non-profit, and tax advice, since 1986
Expert:  Lane replied 6 months ago.
…Hi,...I’m just checking back in to see how things are going....Did my answer help?...Let me know…...ThanksLane…

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