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Do you have to pay BIRT tax on capital gains from sale of…

Do you have to...

Do you have to pay BIRT tax on capital gains from sale of rental real estate

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In philadelphia

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Answered in 19 minutes by:
9/5/2017
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,657
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi My name’s Lane - I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice 1986.

If you’ll please bear with me for a minute I’ll type up my initial response, and then we can go from there if you have further questions on this.

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Yes, from page 28 of the Philadelphia Regs:

...

"(b) Income From Sale of Real Estate.
The full amount of the gain, loss or profit from the sale of real
estate shall be reported without regard to the length of time of
ownership by the owner.

...
Appreciation in value is part of the overall real estate business
activity. The net income recognized from the sale or disposition of
property used in business during the course of business operation
or at termination of the business will be considered wholly
includable in the tax base."

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Customer reply replied 10 months ago
where can i find those regs?

My Westlaw research tool took me right to t when asking the natural language question "Does Philadelphia BIRT apply to sale rental real estate."

...

You'll find the full code here: http://www.phila.gov/li/codesandregulations/Pages/codes.aspx

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DO note that this is deductible on Schedule A as a local income tax.

...

Please let me know if you have ANY questions at all, before rating me.

If this has helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

I hope that you’ll rate me based on my accuracy and thoroughness, rather than any good news/bad news content.

That’s the only way JustAnswer.com will compensate me for the work here.

Thanks,

Lane

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Customer reply replied 10 months ago
is there any more information available on your search results that i could see?
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Customer reply replied 10 months ago
That's perfect. Thank you.

Note also the delineation of both gain and profit on page 1 under the definition of" business:" (underline added).

...

"Business." Carrying on or exercising for gain or profit within Philadelphia any trade, business, including financial business as hereinafter defined, profession, vocation or commercial activity, including the partial or complete liquidation or sale of business assets, or making sales to persons within the City of Philadelphia."

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You're very welcome ... Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …is thanks enough!

That's the only way I'll be compensated by JustAnswer for the work here

...

Thank you,

Lane

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,657
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
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