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CalAttorney2
CalAttorney2, Lawyer
Category: Real Estate Law
Satisfied Customers: 10236
Experience:  I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
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We need an answer from a New York attorney. We have sold a

Customer Question

We need an answer from a New York attorney.We have sold a piece of property in the State of New York. We would appreciate your assistance in completing the Non-Resident Real Property Estimated Income Form (IT-2663). We are selling this on an installment sale. We purchased the property for $390,000 and had $10,748.04 in improvements and closing costs when we purchased the property for a total of $400,748.04.We sold the property for $450,000 on an installment sale. The buyer will pay $7,500 down payment and an estimated $3,373.58 in principal payments in 2016. Our total gain when the loan is paid in full will be $44,078.96, presuming he makes all payments on time.We are trying to understand what Line 20 “estimated tax due” will be. According to our understanding, if the gain is being reported as an installment sale, the amount of the gain will be a percentage of the $7,500 down payment plus a percentage of the principal in each installment sale for 2016 ($3,373.58) for a total of $10,873.58. Do we pay the .0882 tax on the $10,873.58, or a portion of that based on the gain as our estimated tax due on Line 20?I am assuming that what we would owe on Line 20 is $10,873.58, which is the amount of money we expect to receive in 2016 down payment and principal, divided by $44,078.96 which is the total gain we expect on the property when it is paid in full. We multiplied that number by .2467 which we rounded to 25% ($2,718.40). We multiplied that by .0882 for a total of $239.77.
Sincerely,
Bill Dalton
Submitted: 5 months ago.
Category: Real Estate Law
Expert:  CalAttorney2 replied 5 months ago.

Dear Customer,

Thank you for using our forum. My name is ***** ***** I hope to assist you today.

If the gain is being reported as an installment sale, enter the amount of gain that you (and your spouse, if applicable) will be reporting on your 2016 federal income tax return.

Customer: replied 5 months ago.
Is the attached form correct?
Expert:  CalAttorney2 replied 5 months ago.

Unfortunately, I cannot provide formal tax advice for you on the site, you need to speak to a local accountant or tax attorney for formal legal or tax services.

(We are limited to providing general information only, I do apologize for the inconvenience)

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