To Sell a rental property?

[(former)FormerSanDiegan]

UR is correct, the laws did change. A portion of your gain will be tax-free, but a prorated portion will be taxable, depending on the period used as a rental.

The portion of the profit that’s subject to tax is based on the ratio of the time after 31 December 2008 when the house was a second home or a rental unit, to the total time you owned it.

Also, it may have to be your primary residence when you sell it (e.g. you move back in).

Take UR’s recommendation. Consult a tax advisor, but don;t take their word for it. Research it yourself also. But there’s lots of stale info on the web that does not account for recent tax law changes. Confirm any advice with IRS publications.

[JBurkett19]

The rent is $1550 per month. After all expenses, including income tax, I take home about $150 per month.

I plan to either refi. my current house and use teh proceeds toward it, or just invest it in something relatively conservative.

Before any Cap. Gains or income tax, I’d realize about $100k, but around $60k would be the difference between original purchase price and sale price. I think this would be the amount taxable.

[JBurkett19]

The rent is $1550 per month. After all expenses, including income tax, I take home about $150 per month.

I plan to either refi. my current house and use teh proceeds toward it, or just invest it in something relatively conservative.

Before any Cap. Gains or income tax, I’d realize about $100k, but around $60k would be the difference between original purchase price and sale price. I think this would be the amount taxable.

[JBurkett19]

The rent is $1550 per month. After all expenses, including income tax, I take home about $150 per month.

I plan to either refi. my current house and use teh proceeds toward it, or just invest it in something relatively conservative.

Before any Cap. Gains or income tax, I’d realize about $100k, but around $60k would be the difference between original purchase price and sale price. I think this would be the amount taxable.

[JBurkett19]

The rent is $1550 per month. After all expenses, including income tax, I take home about $150 per month.

I plan to either refi. my current house and use teh proceeds toward it, or just invest it in something relatively conservative.

Before any Cap. Gains or income tax, I’d realize about $100k, but around $60k would be the difference between original purchase price and sale price. I think this would be the amount taxable.

[JBurkett19]

The rent is $1550 per month. After all expenses, including income tax, I take home about $150 per month.

I plan to either refi. my current house and use teh proceeds toward it, or just invest it in something relatively conservative.

Before any Cap. Gains or income tax, I’d realize about $100k, but around $60k would be the difference between original purchase price and sale price. I think this would be the amount taxable.

[EJ]

So ballpark 80k after taxes. Annual income of ~1.8k.

1.8/80 = 2.25%

If you assume no appreciation or depreciation on the house (fair assumption for next few years I think), then if you can find an investment with a low-risk return greater than 2.25%, your money is better off there.

Just another way to look at it …

[EJ]

So ballpark 80k after taxes. Annual income of ~1.8k.

1.8/80 = 2.25%

If you assume no appreciation or depreciation on the house (fair assumption for next few years I think), then if you can find an investment with a low-risk return greater than 2.25%, your money is better off there.

Just another way to look at it …

[EJ]

So ballpark 80k after taxes. Annual income of ~1.8k.

1.8/80 = 2.25%

If you assume no appreciation or depreciation on the house (fair assumption for next few years I think), then if you can find an investment with a low-risk return greater than 2.25%, your money is better off there.

Just another way to look at it …

[EJ]

So ballpark 80k after taxes. Annual income of ~1.8k.

1.8/80 = 2.25%

If you assume no appreciation or depreciation on the house (fair assumption for next few years I think), then if you can find an investment with a low-risk return greater than 2.25%, your money is better off there.

Just another way to look at it …

[EJ]

So ballpark 80k after taxes. Annual income of ~1.8k.

1.8/80 = 2.25%

If you assume no appreciation or depreciation on the house (fair assumption for next few years I think), then if you can find an investment with a low-risk return greater than 2.25%, your money is better off there.

Just another way to look at it …

[Author]

Posts