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Do i have to pay taxes on sale of home i have owned since…

Customer Question
Do i have to...

Do i have to pay taxes on sale of home i have owned since 1968 lived in for 33 years and then rented itout when i marred again

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

I sold house and have been told I have to pay income tax

Accountant's Assistant: Is there anything else the Accountant should be aware of?

Not sure what else would be needed

Submitted: 5 months ago.Category: Tax
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Answered in 11 minutes by:
3/19/2018
Tax Professional: Lev, Tax Advisor replied 5 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,389
Experience: Taxes, Immigration, Labor Relations
Verified

The sale of rental property is taxable transaction - and if you realize a gain - that gain is taxable.

However - because the property was owned long enough - the gain is taxed at reduced rate - in most situations - not more than 15%.

If you did not use the property as your main residence during at least two out of last five years before the sale - you may not exclude any gain - regardless if you lived in the property before.

We may have several steps in determination.

1. We need to find out your adjusted basis basis - that is your original purchase PLUS improvements MINUS depreciation PLUS selling expenses.

2. The gain is calculated as (selling price) MINUS (adjusted basis)

Let me know if you need any help to verify your calculations.

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Tax Professional: Lev, Tax Advisor replied 5 months ago

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If you still have any doubts, need clarification - please be sure to ask.

I am here to help you with all Social Security / Tax related issues.

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