| Posted by | Message |
boosiebadazz
Member since Feb 2008
36680 posts
| What is the tax rate on gains from selling a property? (Posted on 1/4/13 at 11:37 pm)
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
|
| Back to top | Share on  |
bryso 
Clemson Fan
The Real Death Valley
Member since Dec 2006
26768 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/4/13 at 11:46 pm to boosiebadazz)
What's your adjusted income?
|
| Back to top | |
boosiebadazz
Member since Feb 2008
36680 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/4/13 at 11:51 pm to bryso)
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
|
| Back to top | |
bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
26768 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/4/13 at 11:54 pm to boosiebadazz)
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
|
| Back to top | |
C 
LSU Fan
The Woodlands, TX
Member since Dec 2007
17392 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/4/13 at 11:54 pm to boosiebadazz)
I don't think you pay anything on the sell ofa primary residence meeting certain criteria.
|
| Back to top | |
boosiebadazz
Member since Feb 2008
36680 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/4/13 at 11:55 pm to C)
it is not my primary residence
|
| Back to top | |
boosiebadazz
Member since Feb 2008
36680 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/4/13 at 11:55 pm to bryso)
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
|
| Back to top | |
C
LSU Fan
The Woodlands, TX
Member since Dec 2007
17392 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/4/13 at 11:55 pm to boosiebadazz)
shite sorry.
|
| Back to top | |
bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
26768 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/4/13 at 11:56 pm to C)
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
|
| Back to top | |
bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
26768 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/5/13 at 12:01 am to boosiebadazz)
Do you have other capital gains losses? Maybe selling stock etc.
|
| Back to top | |
boosiebadazz
Member since Feb 2008
36680 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/5/13 at 12:01 am to bryso)
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
|
| Back to top | |
bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
26768 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/5/13 at 12:03 am to boosiebadazz)
Should be able to offset...
|
| Back to top | |
matthew25 
Ole Miss Fan
Member since Jun 2012
1513 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/5/13 at 12:04 am to boosiebadazz)
Is the stock held in an IRA?
|
| Back to top | |
boosiebadazz
Member since Feb 2008
36680 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/5/13 at 12:09 am to matthew25)
no
loss already realized
|
| Back to top | |
bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
26768 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/5/13 at 12:14 am to boosiebadazz)
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
|
| Back to top | |
boosiebadazz
Member since Feb 2008
36680 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/5/13 at 12:17 am to bryso)
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
|
| Back to top | |
New Boy
LSU Fan
Member since Aug 2009
574 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/5/13 at 10:51 am to boosiebadazz)
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.
|
| Back to top | |
yellowfin 
Illinois Fan
Paige is Pretty
Member since May 2006
51799 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/5/13 at 12:09 pm to boosiebadazz)
you can also deduct and selling expense like an agent
|
| Back to top | |
Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
12664 posts
 Online
| re: What is the tax rate on gains from selling a property? (Posted on 1/5/13 at 12:13 pm to boosiebadazz)
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.
|
| Back to top | |
boosiebadazz
Member since Feb 2008
36680 posts
| re: What is the tax rate on gains from selling a property? (Posted on 1/5/13 at 12:49 pm to Poodlebrain)
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
|
| Back to top | |
