How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask emc011075 Your Own Question
emc011075, Master Tax Adviser
Category: Capital Gains and Losses
Satisfied Customers: 2931
Experience:  Master Tax Adviser and Enrolled Agent
Type Your Capital Gains and Losses Question Here...
emc011075 is online now
A new question is answered every 9 seconds

I bought a house in 1994 which i used as a primary residence

Customer Question

I bought a house in 1994 which i used as a primary residence until 2008 then i rented this property in 2008 until 2016 and sale in 2016 when I should start pay for capital gain since 1994 or 2008?
Submitted: 10 months ago.
Category: Capital Gains and Losses
Expert:  emc011075 replied 10 months ago.

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

You will claim all your capital gains in the year you sold the property. You will figure out your capital gains as followed:

Purchase price

improvements before 2008

selling expenses

= capital gains.

In addition, the depreciation you took from 2008 until 2016 will be added to your income as well.

Expert:  emc011075 replied 10 months ago.

any questions?

Customer: replied 10 months ago.
Bought for 90.000 then sale for 420.000 how much will be my capital gain since I rented the for only 8 years not for all 22 years
Expert:  emc011075 replied 10 months ago.

Reporting a sale of business property requires some complex calculation. Did you do any improvements 1994 and 2008? How much do you think it will cost you to sell it? Including RE commission.

Customer: replied 10 months ago.
about 25.000 spent in improvements and RE expenses 25.000
Expert:  emc011075 replied 10 months ago.

You are looking at about 280K in capital gains and about 34K in depreciation add back. I used 115K as basis for the depreciation (90k+25K), I do not know what did you or your accountant use. It could be little more.

Customer: replied 10 months ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  emc011075 replied 10 months ago.

Do you have any questions? Is there anything else I can help you with today?

Related Capital Gains and Losses Questions