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 Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
Type Your Tax Question Here...
Wallstreet Esq. is online now
A new question is answered every 9 seconds

I have owned a townhouse here in MD. since Sept 2002. I have

Customer Question

I have owned a townhouse here in MD. since Sept 2002. I have rented it out since then but now would like to sell it, and, current market values should allow me to make a profit of about $100,000 (before Cap gains tax). Deprec and the deduction for interest on mortgage have made this property show a paper loss but in actuality, the rentals pretty much covered my total expenses. Balance on mortgage is about 126,000 and props nearby are selling for about 245,000. Tnhs is now vacant and re-painted, spruced up, etc.

I am 67, retired this year and will show an income for 2009 (including 5 months employment, Social Security and small state pension) of about $15-20,000.

I am engaged, and my fiance and I want to build a small retirement home on a lot he owns outright. New House will probably cost about $125,000.
Will I have to pay cap gains on the sale/rebuild and how much?
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.
Hello lgarman,

Can you tell me if you ever actually used this townhouse as your own personal residence?

If so, did you live there for at least 2 of the last 5 years?