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emc011075, Master Tax Adviser
Category: Capital Gains and Losses
Satisfied Customers: 3120
Experience:  Master Tax Adviser and Enrolled Agent
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A friend and I purchased a home as an investment property

Customer Question

a friend and I purchased a home as an investment property and after one week we find we can not work together on this project. I paid $100,000. and now am prepared to sell her my share for a total of $120,000 ...what financial losses do I need to prepare for ?
Submitted: 2 years ago.
Category: Capital Gains and Losses
Expert:  emc011075 replied 2 years ago.

Hi. My name is ***** ***** I will be happy to help you.

You will most likely have some short term capital gains to report, depending what else beside the purchase price have you invested into the project. You will report 120K as sales proceeds and 100K plus other investment as your basis. The difference will be your short term capital gains that will be taxed as ordinary income.

How much tax you will pay will depend on your other income, filing status and your tax bracket.

If you provide me with more information I can estimate your tax liability. What I need to know is what other income do you have, your filing status, if you claim any dependents and how much did you invested into the project beside the 100K.

Expert:  emc011075 replied 2 years ago.

I see you read my respond. Do you have any questions? Is there anything else I can help you with today?

You are offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.