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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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On July 11, 2008 I sold a building that had an upper flat,

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On July 11, 2008 I sold a building that had an upper flat, a middle flat and a restaurant on the ground floor. I lived in the upper flat, rented out the middle flat and I operated a Japanese restaurant on the ground floor. I am a senior citizen over 80 years old who is Japanese citizen and a legal alien with a green card. My question is should I have paid a capital gains tax in 2009? The building was my residence and I sold it because I had a stroke and moved to an assisted living residence.
Submitted: 4 years ago.
Category: Tax
Expert:  Lev replied 4 years ago.
Hi and welcome to Just Answer!

Because the building has three different units - each unit will be treated separately.
You may exclude capital gain realized on your personal residence - up to $250,000.
Two other units - used as a rental property and as a restaurant - will have a gain - and it will be taxable.
Your gain will be calculated as (selling price) - (basis).
You would need to prorate the selling price and the basis as attributable to each unit.

Let me know if you need any help.
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