capital gains question...... - Posted by Rosendo

Posted by Warren Priske on January 27, 2005 at 20:51:30:

You’re right. I’ve gotten to that point in my career where I try to avoid dirty money (the taxable kind) at all costs. If it weren’t for earned income I wouldn’t have been able to come close to meeting my goals in the residual (and non-taxable) income department. I’m glad you’ve done well. You might start to see things my way someday when you look back at what taking on a partner cost you.

capital gains question… - Posted by Rosendo

Posted by Rosendo on January 27, 2005 at 15:17:01:

I live in California and own property in Nevada. I owned a property for 13 months, sold it (non-1031) for 50k profit. I know I have to pay 15% cap gains on the profit but do I pay california tax on the profit or do I benefit from the no income tax Nevada rules?

Thanks for the help!

Re: capital gains question… - Posted by Warren Priske

Posted by Warren Priske on January 27, 2005 at 15:42:24:

Wherever you pay your taxes (the state in which you reside) is where you pay your capital gains taxes. In CA that’s about 9%. Additionally, you may have to pay a real estate sales tax required by the state of Nevada (similar to our 3.3 percent). Selling properties is just no fun unless your using a 1031 exchange. And even then it’s pretty anticlimactic, since you never really get the cash. Better luck next time.

No fun? - Posted by Kristine-CA

Posted by Kristine-CA on January 27, 2005 at 20:03:24:

Warren: why all the doom and gloom? While it’s true that taxes take a
bite out of profits, it’s still fun to sell real estate for a profit! Profit is a
good thing Warren.

I’m taking a huge tax hit for 2004 because all my profits were ordinary
income and my legit expenses were minimal. But the good news is
that I made money. Enough to warrant the tax bill (and hopefully pay it
too.) :slight_smile:
I wouldn’t trade paying a large tax bill for the old days (just a couple
of years ago) when being eligible for the maximum Earned Income
Credit was the booby prize for making (and living on) less than 15K per

Selling properties is still fun for me. Kristine