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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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If a person sells a real estate investment, they pay

Customer Question

if a person sells a real estate investment, they pay applicable taxable gains, and state and city taxs, Which taxs paid are deductible on the following years tax return?
Submitted: 4 months ago.
Category: Tax
Expert:  ABC Accounting Group replied 4 months ago.

Hi. Great Question.

State income taxes you had paid are deductible on Schedule A.

The property taxes you paid for that year are deductible. Any taxes that you paid for your property, that were not part of any basis to come to your gain or loss is deductible (Schedule E).

Expert:  ABC Accounting Group replied 4 months ago.

The tax return is based on cash-basis. So, if you paid a tax for the year before in the next year, it should be deductible on the next year's return.

Customer: replied 4 months ago.
if the person had no income for the following year does these deductions carry forward?
Customer: replied 4 months ago.
to reiterate the state taxs are deductible, the real estate taxs, no federal taxs.the transfer tax is also deductible?
Expert:  ABC Accounting Group replied 4 months ago.

Transfer tax should be part of your basis, to determine the gain.

Expert:  ABC Accounting Group replied 4 months ago.

Let me know if you have any questions.

Customer: replied 4 months ago.
does the tax paid deduction carry forward f you have no income on year 2?
Expert:  ABC Accounting Group replied 4 months ago.

Hi. Good Question. No, only if you have a capital loss.

Expert:  ABC Accounting Group replied 4 months ago.

Let me know if you have any questions.