Capital Gains and Losses

Capital Gains and Losses

# I am in contract to sell my house for \$980.000.00 2/3 of the

Customer Question
house is rental and I...
I am in contract to sell my house for \$980.000.00 2/3 of the house is rental and I paid \$277,000.00 for the house. The house is in Brooklyn, NY. How much capital gains do I need to pay
Submitted: 1 year ago.Category: Capital Gains and Losses
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4/1/2016
Tax Expert: levr, Tax Advisor replied 1 year ago
Category: Capital Gains and Losses
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First of all we need to treat a part of the house used for rental as a separate asset.Correspondingly a part of the house used as a personal residence woudl be a separate asset as well.
Tax Expert: levr, Tax Advisor replied 1 year ago
So the sale price of rental property would be \$980.000 * 2/3 = \$653,333The basis of rental property \$277,000 * 2/3 = \$184,667For precise calculations - we need to know accumulated depreciation and improvements and selling expenses, but as a rough estimation -the gain would be \$653,333 - \$184,667 = \$468,666Depending on your other taxable income - it woudl be mainly taxed at 15% federal income tax rate.NYS tax rates are between 4% and 8.82%and NYC tax rates between .907% and 3.876%https://www.tax.ny.gov/pdf/current_forms/it/nyc_tax_rate_schedule.pdfAssuming 1/3 of the property was used as your primary residence - the gain on that part could be excluded from taxable income..I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you will all tax related issues.
Category: Capital Gains and Losses
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