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#1
02-04-2005, 04:12 AM
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 Re: Capital Gains on Florida Property Sale as California Resident? "jnelson[at]webalternatives.net" <jnelson[at]webalternatives.net> wrote: - quote - > I bought a home in Miami Florida in 1992 for $125K. I did
Of course. It's income. And it's income based on a sale of> this for a friend who would not qualify so I purchased the > home, he lived there and made the payments with the idea > that he would fix his credit and buy the house from me. I > never lived in the home and later moved to California 2002. > Now my friend is ready to buy the house (finally), but the > value has gone up to $230K and the current loan is at $180K. > If we transfer the home at a price of $180K, what capital > gains would I be required to pay? Im not sure Florida taxes > this, but because I now live in California, would they tax > me as well? $230k. The remainder is a gift. - quote - > Doesn't anyone know what the IRS tax rate would be?
15%- quote - > I thought about simply adding the taxes into the price of
--> the home, but the more I add in, the more it seems I'll be > taxed! Any advise is greatly appreciated! David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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02-04-2005, 03:53 AM
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| Re: Capital Gains on Florida Property Sale as California Resident? "jnelson[at]webalternatives.net" <jnelson[at]webalternatives.net> wrote: - quote - > I bought a home in Miami Florida in 1992 for $125K. I did
This would be a long-term capital gain taxed at 15% federal,> this for a friend who would not qualify so I purchased the > home, he lived there and made the payments with the idea > that he would fix his credit and buy the house from me. I > never lived in the home and later moved to California 2002. > Now my friend is ready to buy the house (finally), but the > value has gone up to $230K and the current loan is at $180K. > If we transfer the home at a price of $180K, what capital > gains would I be required to pay? Im not sure Florida taxes > this, but because I now live in California, would they tax > me as well? Doesn't anyone know what the IRS tax rate would > be? > I thought about simply adding the taxes into the price of > the home, but the more I add in, the more it seems I'll be > taxed! Any advise is greatly appreciated! though it appears that you effectively had a rental property where the rent was the payments he made. Thus, there could be depreciation recapture. Fortunately, you can claim all the depreciation in the year of sale (and you might not have gotten use of a passive loss anyway, depending on your other income). Depreciation recapture would be at 25%, while the unused passive losses might be deductible at a higher tax benefit. As far as CA goes, it's probably top-bracket. If you sold it for less than fair market value, there might be a gift element to pay attention to. -- Tom Healy, CPA Boulder, CO Web: http://www.tomhealycpa.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
02-03-2005, 05:46 PM
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| Capital Gains on Florida Property Sale as California Resident? I bought a home in Miami Florida in 1992 for $125K. I did this for a friend who would not qualify so I purchased the home, he lived there and made the payments with the idea that he would fix his credit and buy the house from me. I never lived in the home and later moved to California 2002. Now my friend is ready to buy the house (finally), but the value has gone up to $230K and the current loan is at $180K. If we transfer the home at a price of $180K, what capital gains would I be required to pay? Im not sure Florida taxes this, but because I now live in California, would they tax me as well? Doesn't anyone know what the IRS tax rate would be? I thought about simply adding the taxes into the price of the home, but the more I add in, the more it seems I'll be taxed! Any advise is greatly appreciated! << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| california, capital, florida, gains, property, resident, sale |
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