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 Richard Your Own Question
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55605
Experience:  29 years of experience as a tax, real estate, and business attorney.
Type Your Tax Question Here...
Richard is online now
A new question is answered every 9 seconds

We sold our summerhome in Wisconsin in 2009. Our principal

This answer was rated:

We sold our summerhome in Wisconsin in 2009.
Our principal residence has been Florida for 10 years so we have not been filing tax returns
in WI.
But now the state of WI wants me to pay capital gains on that property. We did realize
a gain but I did not file because we used the money to pay off the mortgage and buy
a small condo in Romeoville, IL.
My question is: can the amount used on rebuying be deducted from the capital gains
thus saving substantial tax.
In addition, can any of the gov't. and realtor fees be deducted?
I have filled out the WI 2009 form and it is ready to, but I would like to save some, or
all of the $4000 tax I apparantly own.
Thanks for your advice. XXXXX XXXXX
[email protected]

Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good morning. Unfortunately, the reinvestment of the money is no longer relevant with regard to the taxation of gains. You can reduce the gain by all the closing costs, including govt. fee and commissions. Plus, of course, the gain is based not only on the sale price (reduced by those costs), but also reduced by your basis in the property (i.e., your purchase property plus any improvements).

I hope this
has given you information that has been helpful to you. If the information
more general than
specific, please be aware that we are only allowed to
provide information
and not
specific advice.
If you
have a follow-up question, please remember that there might be a delay between
your follow up questions and my answers because I may be helping others or
taking a break.

If you do have any additional questions about my answer
please simply ask a follow up question without rating so I can provide
you with a fully satisfactory answer.
Please be aware that any rating of 1 or 2 is
reflected as a negative rating, reflects negatively on my performance, and I
receive no credit for my answers.

Thanks for allowing me to be of service to you. Please be
aware that the information provided here is not legal advice. Rather it is
simply general information. All states have intricacies in their laws and any
information given is simply information only and specifically is not

intended to be, nor does it constitute, legal
advice. This communication does not establish an attorney-client relationship
with you. I hope this answer has been helpful to you.

Richard and 2 other Tax Specialists are ready to help you