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I sold a four family home, do I have to pay capital gains

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tax....
I sold a four family home, do I have to pay capital gains tax.
Submitted: 1 year ago.Category: Tax
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Answered in 1 minute by:
1/8/2016
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,878
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi,

...

I hold a JD (Juris Doctorate, a doctoral degree in the law), concentration in Tax Law & Corporate law, an MBA (specialization in finance & tax), and BBA from mercer University’s Stetson School of Business and Economics, as well as CFP® and CRPS designations.

...

That will depend on whether it (or any part of it) is considered as your primary residence.

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

The IRS test for primary residence is having lived in the home for any 24 months out of the last five years before the sale.

...

If that were the case, then up to 250,000 of gain is excluded (500,000 for those married filing jointly)

...

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Customer reply replied 1 year ago
is primary resident for 15yrs
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Then up to 250,000 of the gain (Gain is sales price MINUS basis) ... basis being purchase price plus improvements is excludable for a single filer ... again, 500,000 for joint filers

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

But now, your situation falls partly within that rule , and you may have to run the numbers differently than most people that sell their homes, if the home isn't a single family home or if some of the building is rental units.

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

If THAT's the case, then you’ll have to allocate a percentage of the property as a whole to your primary residence and then determine whether you owe taxes on the sale that part of the property.

...

Then did not have a profit of more than $250,000 (500,000 for couples) on the sale the portion that was your home, you should owe no federal income taxes on that part of the sale.

...

But WILL have capital gains on the portion of the property that does not qualify because those units (portions of the house) were NOT your primary residence.

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Questions at this point?

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Hi,

I’m just checking back in to see how things are going.

Did my answer help?

Let me know…

Thanks

Lane

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Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
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