What are taxes when selling investment property? – Piggington's Econo-Almanac

This topic has 4 replies, 5 voices, and was last updated 10 years, 12 months ago by FlyerInHi.

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December 26, 2013 at 5:33 PM #20896

citydweller
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If I sell an investment property that I’ve had for 13 years and make $100K profit, how much of that would I have to pay in taxes? Are there capital gains taxes as well as income taxes? Would I have to pay state tax?

December 27, 2013 at 1:08 AM #769403

CA renter
Participant

It’s like any other investment. You pay cap gains on net profit, both federal and state.

I am not a tax advisor.

December 27, 2013 at 7:52 AM #769408

Hobie
Participant

It also matters if you pocket the profit or reinvest it in another investment property.

December 27, 2013 at 2:43 PM #769417

SD Realtor
Participant

Yep you need to check with your CPA. Your 100k calculation needs to also include depreciation recapture. Make sure you calculate your basis correctly.

December 29, 2013 at 9:44 AM #769431

FlyerInHi
Guest

If you plan to reinvest the money, you can do a like kind 1031 exchange to defer your taxes into the future. You need to use an intermediary service for that.
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