Posted by Lexxy on July 21, 2006 at 12:08:05:
Help!!!
Capital Gains Help!!! - Posted by Lexxy
Posted by Lexxy on July 20, 2006 at 14:45:47:
I am in the process of selling my apartment building and I still can’t figure out how much capital gains and depreciation I will owe. Could someone please help me!!!
The apartment building has 3 units and I lived in 1 of those units for 9 years and I rent the other 2 units.
I bought the property for $175,000 and I am selling it for $669,000. I refinance the house and I now owe $385,000. I know I will be excluded of any capital gains for the apartment that I live in at least up to $500,000 married. I just don’t know how to calculate. I was told that I will have to report the sale as two separate sales Personal (1/3) and Rental (2/3).
Here is the information to figure out the capital gains:
Purchase: $175,000
Selling Price: $669,000
Improvements: $40,000 (rental units) and $ 5,000 (my unit)
Sellig Cost: $26,760
Depreciation: $56,496 (rental units)
I claimed depreciation on my tax returns during the 9 years and this was the amount.
I do know that I will be tax these percentages:
Unrecapture Depreciation Tax: 25%
Capital Gains: 15%
State Tax: 3%
Any help will be greatly appreicated.
Thanks
Re: Capital Gains Help!!! - Posted by dj-nyc
Posted by dj-nyc on July 25, 2006 at 17:41:54:
Lexy,
An CPA, and or attorney can help you with this. I use both in my transactions because too much money is at stake to make mistakes on my own.
It is good to have a “team” that you work with:
CPA
attorney
mortgage banker
Re agent
Handyman, etc…
You are in a great position! Have you considered doing a 1031 exchange?
Good luck,
DJ-nyc