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If I sell my Bread and Breakfast in La Ventana Baja CA. What

are the tax obligations to...
If I sell my Bread and Breakfast in La Ventana Baja CA. What are the tax obligations to bring the money to California
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Answered in 8 minutes by:
8/3/2011
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,132
Experience: Taxes, Immigration, Labor Relations
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LEV :

Hi and welcome to Just Answer!
If you are US citizen or US resident for tax purposes - you need to report the sale transaction on your US tax return.
The fact of transferring the money to the US by itself would not trigger any tax liability.

LEV :

You need (1) start with the list of assets (2) allocate the sale price to each asset (3) calculate the gain separately for each asset.


The gain for each asset = (selling price) - (basis).
The basis is mainly your purchase price of the asset (assuming the asset was purchased) adjusted by improvements and some other expenses.
The gain on sale of a real estate - assuming you owned it more than a year - will be taxed at reduced rate - not more than 15%. However you might be required to recapture depreciation which will be taxed at higher tax rate.


If the same income is taxable in the US and abroad – you may claim a credit for foreign taxes paid – but not more than your US tax liability on that income.

Customer:

Hi LEV

Customer:

Hi Lev This information is going to help allot thank you Can I contact you again if I have more questions about this matter

LEV :

I will help you to estimate your tax liability if needed.
Please also consider installment sale - that is reported differently and might defer and reduce your overall tax liability.


Please bookmark this page - so you will easily find it.
You may come later to ask for clarification if needed. I might not be immediately available - but surely will reply.

Customer:

Ok Lev Thank you How do I book mark it?

Customer:

Hi Lev This is the 1st time I have used your service. Love this!!!!!!! I always have tons of legal questions. So do my family and friends. I will tell them about you guys for sure.

LEV :

To bookmark - add this page to Favorites in your browser.
If you have any difficalties - here is the address of this page - http://www.justanswer.com/tax/5czzg-sell-bread-breakfast-la-ventana-baja-ca.html


Please be sure to accept the answer. Experts are credited only if the answer is accepted.

Customer:

Hi Lev got it I already have that covered on my iphone, ipad, and my big MAC

LEV :

You are welcome. I am glad to be helpful.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,132
Experience: Taxes, Immigration, Labor Relations
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Customer reply replied 6 years ago
AWESOME!!!!!!!!!!! Thank you Lev
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Lev
Lev
Lev, Tax Advisor
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Satisfied Customers: 30,132
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