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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10103
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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If i sell a condo do i have to pay taxes Assistant: Thanks.

Customer Question

if i sell a condo do i have to pay taxes
Assistant: Thanks. Can you give me any more details about your issue?
Customer: I have a condo that I rent is there any taxes involved
Submitted: 9 days ago.
Category: Tax
Expert:  Lane replied 9 days ago.

Hi My name's Lane ... I can help here

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I have a Law degree with concentration in Tax , Estate & Corporate Law, … an MBA, with specialization in finance … a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

Please bear with me a moment while I prepare your response

Expert:  Lane replied 9 days ago.

If you sell the Condo, you may have a capital gains tax.

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If you sell for more than you have invested (purchase prices plus improvements minus depreciation) then you will have a capital gain.

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Long-term gains are taxed at:

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  • 0% if taxable income falls in the 10% or 15% marginal tax brackets
  • 15% if taxable income falls in the 25%, 28%, 33%, or 35% marginal tax brackets
  • 20% if taxable income falls in the 39.6% marginal tax bracket
  • 25% on Depreciation Recapture

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in terms of renting the condo, you pay income tax on the rents (MINUS rental expenses such as depreciation, mortgage interest, property taxes, insurance, etc)

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This is reported on schedule E.

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If you'd like some help calculating the gain, I can help

Customer: replied 9 days ago.
He is not filing taxes in the states
Customer: replied 9 days ago.
Can I Email you after I will talk to him
Expert:  Lane replied 9 days ago.

my apologies... This question showed up in the US Tax area

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If you'll provide the jurisdiction I'll move to the proper area.

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If this is a common law country I may still be able to help, I have clients in UK, Canada and IE

Expert:  Lane replied 9 days ago.

What country?

Expert:  Lane replied 9 days ago.

I tried to accept the call request. But there was a problem of some sort ... Maybe you can contact customer service? (We expert users are not allowed to deal with account issues)

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JA customer svc

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Email | Chat | Phone

Customer: replied 9 days ago.
I will call you next Tusday
Expert:  Lane replied 9 days ago.

very good, but very quickly ... Is this a US person?

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Lane

Customer: replied 9 days ago.
am but he is Canadian
Expert:  Lane replied 9 days ago.

ok... Then the way the gain is handled there is that only half (50%) of the capital gain on any given sale is taxed all at the marginal tax rate (which varies by province).

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On a capital gain of $50,000 for instance, only half of that, or $25,000, would be taxable. For a Canadian in a 35% tax bracket for example, a $25,000 taxable capital gain would result in $8,750 taxes owing. The remaining $41,250 is the investors’ to keep.

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If this is US property however, that would be another issue as well

Expert:  Lane replied 9 days ago.

To calculate any capital gain or loss, you need to know the following three amounts:

  • the proceeds of disposition;
  • the adjusted cost base (ACB); and
  • the outlays and expenses incurred to sell your property.

To calculate your capital gain or loss, subtract the total of your property's ACB, and any outlays and expenses incurred to sell your property, from the proceeds of disposition.

Expert:  Lane replied 9 days ago.

1/2 of that gain, then, is added to other income

Expert:  Lane replied 9 days ago.

If you like I can make an offer to do the phone consult on Tuesday. Might be more efficient to sort all of this out.

Expert:  Lane replied 9 days ago.

(I charge $49 for a phone consult)

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Let me know