Taxes on a small property sale

Depends on your basis, if you took any depreciation and your other income.

Go to your local CPA.

Try to get free legal advice, in advance of the closing, from the Title company attorney that will be handling everything. They have probably seen your scenario a hundred times and know the best route to take saving you a couple grand on a retained tax atty.

Personal residence or other?

quote:

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What can expect to pay if I sell a small lot and house if I get $150,000 for it

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Depends on what you paid for it and any improvements that were made.

You are taxed on the gain, meaning the sale price minus what you paid (or value at date of inheritance). If you made any improvements to the property, such as a new roof, added a pool, renovated a bathroom, etc., you can also add that to the amount you paid to further reduce your gain.

Ok. I’m back with more details to help get me an answer. Bought this house in August of 2000. Paid $58,050 cash for it. Lived in it for about 7 years. My elderly father lived in it until he passed. Started renting it in 2010, so have been renting it for 12 years. I remember my CPA then taking depreciation on it for a few years I believe. I don’t keep tax records older than 5 years so I can’t speak on that definitely. Asking some seasoned realtors, I should be able to get my asking price of $158k. Or close. So with this additional info. What can expect to pay in taxes?

So I’m still hoping to get a number?

Take your basis provided of 58k, divide by 27.5, multiply that figure by 12 yrs, take that total and multiply by your income tax rate, add this to your 18% capital gain figure that you get when you take your sales price and subtract your basis provided of 58k.

Then, throw this away, call a CPA, and give them your info and they can guess just the same.