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Started By
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Investment property tax question.
Posted on 3/31/24 at 5:47 pm
Posted on 3/31/24 at 5:47 pm
I sold a condo that I had for 5 years and bought a single family. As long as I put the proceeds to the new property I dont have to pay any capital gains do I?
6
Posted on 3/31/24 at 6:01 pm to BHTiger
Did you execute a 1031 ? Was there an intermediary?If you ever touched the proceeds you have to pay the gains.
Posted on 3/31/24 at 6:40 pm to BHTiger
Not on a personal property. But you said investment.
Posted on 3/31/24 at 8:23 pm to BHTiger
Unless you did it through a 1031 intermediary then nope. Gonna get hit with long term gains on that bad boy.
Posted on 4/1/24 at 7:51 am to rpg37
No the proceeds went directly into the 2nd property. The proceeds were held in escrow.
This post was edited on 4/1/24 at 8:05 am
Posted on 4/1/24 at 10:11 am to BHTiger
Both closings had to be done specifically and formally as a 1031 exchange, with funds held by a qualified intermediary to avoid the CG.
Posted on 4/1/24 at 10:59 am to BHTiger
Yes if you did not do it the very precise and exact way via 1031 rules, then you are out of luck unfortunately
Posted on 4/3/24 at 10:08 pm to BHTiger
quote:
I dont have to pay any capital gains do I?
YES YES U DO
Posted on 4/4/24 at 10:01 am to BHTiger
Was the condo your personal residence for at least 2 of the 5 years? If so, you won’t be taxed on any gain up to $250k individual or $500k married.
Posted on 4/4/24 at 10:16 am to bamaswallows
quote:
Was the condo your personal residence for at least 2 of the 5 years? If so, you won’t be taxed on any gain up to $250k individual or $500k married.
Just to piggyback on this thread. I am renting out my former primary residence currently and Q4 next year will make 3 years. If I sell before then, I know I wouldn’t owe capital gains, but what about the depreciation I have claimed? How does that factor in?
Also, question for the seasoned investors. I have a 2.75% rate on this property that I would hate to give up, and the property cash flows very nicely, but wouldn’t it still make sense to take advantage of this one time opportunity I have to sell before 3 years to avoid capital gains?
I owe $120k and have about $130k in equity ($65k of this is appreciation).
This post was edited on 4/4/24 at 10:18 am
Posted on 4/4/24 at 10:22 am to BHTiger
Out of curiosity, why didn’t you investigate this before you sold this property?
Posted on 4/4/24 at 10:31 am to PhiTiger1764
You will have to pay the depreciation times your tax bracket on the gain.
Posted on 4/4/24 at 10:37 am to rpg37
Gotcha, thank you
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