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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16575
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I live in half of a duplex i own. i've rented out half of it

Customer Question

I live in half of a duplex i own. i've rented out half of it (one 2 bedroom apt) to my daughter for about 6 years and took 26,000 in depreciation. i make about 25,000/yr
i only charged her about 500/mth or 6,000/yr (and payed many of her other bills} I owe 100,000 mortgage
QUESTION: if i sell the duplex for 200,000, how much tax will i have to pay?
I have not rented it out the last year 2015, cause she moved .
Submitted: 1 year ago.
Category: Tax
Expert:  Megan C replied 1 year ago.

Thank you for your question, my name is ***** ***** I will be happy to help you today.

What did you purchase the property for?

Take $200,000 - cost of the property - realty commissions - any improvements (not repairs) made + depreciation = amount subject to capital gains. If 0 or negative, then you do not owe capital gains tax.