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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55590
Experience:  29 years of experience as a tax, real estate, and business attorney.
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If I owned a condo and did not live in it, but sold it and

Customer Question

If I owned a condo and did not live in it, but sold it and made a profit, do I have to pay taxes on it? I did not rent the property out and it was not my primary residence. I allowed my boyfriend to live in the condo and I did not charge rent. My Primary residence is my parent house. I also purchased a new condo and have a mortgage on that one. Linda ***@******.***
Submitted: 1 year ago.
Category: Tax
Expert:  Richard replied 1 year ago.
Good morning Linda. My name is ***** ***** I look forward to helping. Unfortunately, since this is not your principal residence, your gain (1.Sale price (less closing costs) in excess of 2. purchase price plus cost of any improvements) would be a capital gain and subject to tax. Florida has no state income tax. On the Federal level, the tax laws concerning taxation of long term capital gains are as follows:0% applies to long-term gains and dividend income if a person is in the 10% and 15% tax brackets,15% applies to long-term gains and dividend income if a person is in the 25%, 28%, 33%, or 35% tax brackets, and20% applies to long-term gains and dividend income if a person is in the 39.6% tax bracket.In addition, starting in 2013, capital gain income became subject to an additional 3.8% Medicare tax for taxpayers with income at or above a certain threshold. This 3.8% Medicare surtax applies to taxpayers with “net investment income” in excess of threshold income amounts of $200,000 for single filers and $250,000 for married couples filing jointly. Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!
Customer: replied 1 year ago.
Richard:I had my taxes prepared by Jackson Hewitt this past Saturday and they told me that I do not need to pay taxes on the sale. I never received anything from the IRS regarding the property that I sold, and I used a portion of what I made on the sale for the new condo that I purchased. Linda
Expert:  Richard replied 1 year ago.
Hi Linda. If you had a sale that resulted in a gain on the sale, then it would be taxable if you are in a taxable bracket unless you did a 1031 like kind exchange and complied with those specific rules. I don't know your specific fact situation, but I would be highly skeptical of JH telling you that you did not have to report this sale.