I need some tax advice. Our home that is being rented out in St Louis is being vacated at the end of the month. What I need to know is what is what are the tax ramifications of the sale. Some infoBought the house in 7/ 2007 for 325,000started renting the property in 7/2009 The fair market value of the house at the time of rental was 319,900. We had it listed for that at that time. We have had it rented out for three years. the rent was 1995/monthWe averaged 5000/yr in losses that was the difference in rent paid and our mortgage. We have about $2000 in repair bills that did not improve the value of the home. our combined W2 income level is a little over 500k We pay city of cincinnati and Ohio state tax Our payoff loan ammount is 271K At what net sales price ( taking in to account the tax deduction ) will we actually be losing money. For example if we sell the house for 265,000 and pay the realtors 15k in commission (net sale 250K) what will be our end out of pocket expense.
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There is simply not enough information to fully compute our gain or loss based on the info provided. Even if there is, the forum prohibits the practice of accounting or tax online, so I would not be able to compute an exact number here.It reAlly doesn't matter, however. You aren't going to set the price of your home based on whether yo have a taxable gain or not. Buyers don't care about your tax situation and cannot factor that not the price they are willing to pay. Don't let the tax tail wag your financial dog!