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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29967
Experience:  Taxes, Immigration, Labor Relations
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I own a residence in a condominium building which is my homestead.

Customer Question

I own a residence in a condominium building which is my homestead. The residence has the assignment of many parking spaces, which the association allows you to sell. My homestead to day is not worth what I have invested in it. Can I sell the parking spaces and use the proceeds to reduce my basis, or must I pay capital gains on the spaces when I sell them?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
If you sell parking spaces - you must apportion the basis to the part of your real estate that is sold - and separately calculate gain or loss on that sale.
Expert:  Lev replied 1 year ago.
It is likely that you would not have any gain as you invested more in that property that it is worth now.Let me know if you need any help with reporting.