Posted by John B. Corey Jr. on July 03, 2005 at 19:42:48:
Assuming you do not attempt to defer the tax using a 1031 exchange…
You do not have a capital gain. The asset was not held for a year. The tax on the profits (sale price minus purchase price minus allowed expenses) will be treated as ordinary income. As if you had received a raise or bonus at work.
You will take a bit on the taxes.
No one every turned down a raise because they might have to pay further taxes so think of it as the same.
Chelsea Private Equity LLC
Capital Gain Taxes - Posted by Michael
Posted by Michael on July 03, 2005 at 12:29:26:
I purchase a condo 5 months ago for $170,000 as an investment property. I have a contract to sell it for $220,000. I was wondering, what type of taxes I am looking to pay for my capital gain?
Re: Capital Gain Taxes - Posted by jimmy
Posted by jimmy on July 03, 2005 at 20:58:19:
you WILL have a capital gain, but it will be a SHORT TERM CAPITAL GAIN.
STCG’s are better than ordinary business income, but are not as preferred as long term capital gains.
any tax advisor can fill you in on the distinctions.