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We owned a vacation cabin with another couple but never

We owned a vacation...

We owned a vacation cabin with another couple but never rented it to anyone. we sold it last year and both couples made $11,000 after the sale. Do we owe anything?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

That is all there is to tell.

Accountant's Assistant: Is there anything else important you think the Accountant should know?

Other than we live in Florida and the cabin was in NC

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Answered in 5 minutes by:
2/25/2018
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,675
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Hi. My name’s Lane.

...

I hold a law degree, 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, since 1986.

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I'm reviewing your question now and typing up my reply.

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I'll post that in just a few moments. Then, let me know if you have further questions on this.

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The answer depends on your purchase price

...

If your sales price was more than what you have invested in it, then yes, you have a taxable gain.

...

Capital Gain = Sales price - basis

...

And basis is your purchase price plus any improvements you made to the property

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Customer reply replied 4 months ago
I have to pay capital gain on $11,000?

ON the difference between what you bought it for (your portion of course) and what you sold it for.

...

If you paid 5000 for your portion and received 11,000 then you have a $6,000 gain

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Customer reply replied 4 months ago
Thank you. I get it now....

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

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Thank you,

Lane

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,675
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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