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boosiebadazz
Member since Feb 2008
49831 posts

What is the tax rate on gains from selling a property?

bought for 99k in 2006

will probably sell in 110k range

owe 80k on the mortgage

not my primary residence; dont claim homestead exemption on it

what kind of tax bill am i looking at?

can i also deduct other stuff from this number? like tuition or other capital losses?
This post was edited on 1/4 at 11:39 pm



bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27097 posts

re: What is the tax rate on gains from selling a property?
What's your adjusted income?


boosiebadazz
Member since Feb 2008
49831 posts

re: What is the tax rate on gains from selling a property?
gonna be low. student for half the year and working for the other half

let's say 25k-40k, but may be even lower

does that help?
This post was edited on 1/4 at 11:52 pm


bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27097 posts

re: What is the tax rate on gains from selling a property?
15% then

If you make 400k single or 450k joint it would be 20% plus a 3.8% "medicare surtax"

This post was edited on 1/4 at 11:55 pm


C
LSU Fan
The Woodlands, TX
Member since Dec 2007
23183 posts

re: What is the tax rate on gains from selling a property?
I don't think you pay anything on the sell ofa primary residence meeting certain criteria.


boosiebadazz
Member since Feb 2008
49831 posts

re: What is the tax rate on gains from selling a property?
it is not my primary residence



boosiebadazz
Member since Feb 2008
49831 posts

re: What is the tax rate on gains from selling a property?
15% of the ~11k?

is that tax standalone? meaning can i apply other deductions or something to get that rate lower or that final number lower?

or the deductions on go towards lowering my taxable income and the bracket that puts me in?
This post was edited on 1/4 at 11:57 pm


C
LSU Fan
The Woodlands, TX
Member since Dec 2007
23183 posts

re: What is the tax rate on gains from selling a property?
shite sorry.


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bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27097 posts

re: What is the tax rate on gains from selling a property?
Correct primary residence is/was sheltered for the under 250 crowd... Not sure how that's changed with our new tax burdens. But op said it wasn't his primary res


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bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27097 posts

re: What is the tax rate on gains from selling a property?
Do you have other capital gains losses? Maybe selling stock etc.



boosiebadazz
Member since Feb 2008
49831 posts

re: What is the tax rate on gains from selling a property?
yeah

5k loss on stock

will that help me?

so 15% of ~6k now?
This post was edited on 1/5 at 12:04 am


bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27097 posts

re: What is the tax rate on gains from selling a property?
Should be able to offset...


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matthew25
Ole Miss Fan
Member since Jun 2012
4021 posts

re: What is the tax rate on gains from selling a property?
Is the stock held in an IRA?


boosiebadazz
Member since Feb 2008
49831 posts

re: What is the tax rate on gains from selling a property?
no

loss already realized


bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27097 posts

re: What is the tax rate on gains from selling a property?
And I assure the gain hasn't been realized...

If you have more losses than gains you can write that off your ordinary income for the year up to like 3k. Next year you can use te remaining 2k against the gain you will, hopefully, see from the property.
This post was edited on 1/5 at 12:15 am


boosiebadazz
Member since Feb 2008
49831 posts

re: What is the tax rate on gains from selling a property?
gain on property should be realized within next month or so

loss on stock was realized this year, i believe

i just wanted to get a general idea

i can ask the family accountant more once hard numbers come into play

thanks for your help.
This post was edited on 1/5 at 12:19 am


New Boy
LSU Fan
Member since Aug 2009
692 posts

re: What is the tax rate on gains from selling a property?
1031 Exchange. Identify another property within 45 days of closing on your current property. Use the $30k as a downpayment and close within 180 days and you can defer your capital gains taxes.


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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
78156 posts

re: What is the tax rate on gains from selling a property?
you can also deduct and selling expense like an agent


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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
17573 posts

re: What is the tax rate on gains from selling a property?
Will there be any expenses associated with the sale, e.g. broker's commissions? If not, then you have approx. $11,000 of LTCG for 2013, and you have $2,000 of capital loss carryover from 2012. So you have $9,000 of net LTCG that will be subject to tax at either 0% or 15% depending on your marginal tax rate.

If you are interested in another real estate investment (not a personal residence), then you can do a 1031 exchange. You will have approx. $31,000 of equity to invest, and I'm sure you could find one, or more, rental properties that would be economically beneficial and provide you with tax benefits. Talk to your family accountant before the sale is completed, and he should be able to direct you to someone who can assist you with a 1031 exchange.


boosiebadazz
Member since Feb 2008
49831 posts

re: What is the tax rate on gains from selling a property?
1031 is not on the table. Money will be used to pay off note and law school loans. I should see ~8k after all of that.

I am using an agent so I could deduct that. I also have the 5k loss on a stock play.

Thanks for all the help.

ETA: can you expound on the either 0% or 15% depending on marginal tax rate? I'm a broke arse grad student and don't show much of an income. Like less than 25k probably. What's the cutoff between 0% and 15%?
This post was edited on 1/5 at 12:55 pm


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