 Cap Gains - Tax question (by Roger [NY]) Jan 25, 2022 11:22 AM
 Cap Gains - Tax question (by WMH [NC]) Jan 25, 2022 11:36 AM
Cap Gains - Tax question (by MikeA [TX]) Jan 25, 2022 12:50 PM
Cap Gains - Tax question (by WMH [NC]) Jan 25, 2022 1:10 PM
Cap Gains - Tax question (by Kim [TX]) Jan 25, 2022 1:30 PM
Cap Gains - Tax question (by don [PA]) Jan 25, 2022 2:37 PM
Cap Gains - Tax question (by Ray-N-Pa [PA]) Jan 25, 2022 3:09 PM
Cap Gains - Tax question (by Ray-N-Pa [PA]) Jan 25, 2022 3:12 PM
Cap Gains - Tax question (by jonny [NY]) Jan 25, 2022 3:31 PM
Cap Gains - Tax question (by Sue [IL]) Jan 26, 2022 11:00 AM
Cap Gains - Tax question (by Roger [NY]) Posted on: Jan 25, 2022 11:22 AM
Message:
First the question: "What/how will I have to report my capital gains as to the IRS?"
The deal:
-I am selling one of my properties, no RE broker.
-My cost basis is $150,000.
-Selling for $250,000.
-I am not doing a 1031, and will be paying capital gains.
The situation:
-Buyer wants to write the deal at $270,000 to mortgage as much as possible. I receive $250,000 with a $20,000 "seller concession" to the buyer.
-I do not want to get hit with additional cap gains by assisting the buyer.
And the question: "What/how will I have to report my capital gains as to the IRS?"
--207.241.xxx.xxx |
Cap Gains - Tax question (by WMH [NC]) Posted on: Jan 25, 2022 11:36 AM
Message:
That is mortgage fraud these days.
Even without a realtor you have to file HUD sheet with the IRS. I don't know how, we always use an attorney.
We've never sold anything that would incur capital gains, and never would with a CPA. --50.82.xxx.xxx |
Cap Gains - Tax question (by MikeA [TX]) Posted on: Jan 25, 2022 12:50 PM
Message:
Ask him to get a written OK on this from his lender and you will consider it. Otherwise, the lender is being lied to which is generally call fraud and never good.
Another thought is that if the lender will loan an extra 20 thousand then the appraisal came in higher than your selling price. In theory you could have sold it for $20,000 more than you did. So, tell the buyer you sure will write the deal for $270K but there will be no concession. --209.16.xx.xxx |
Cap Gains - Tax question (by WMH [NC]) Posted on: Jan 25, 2022 1:10 PM
Message:
*withOUT a CPA. --50.82.xxx.xxx |
Cap Gains - Tax question (by Kim [TX]) Posted on: Jan 25, 2022 1:30 PM
Message:
Your Capital Gain is reported and paid in that year's tax return (same year you sell). --23.30.xx.xxx |
Cap Gains - Tax question (by don [PA]) Posted on: Jan 25, 2022 2:37 PM
Message:
Your cap gains is calculated off of your net amount from the sale, meaning after all of your expenses including seller assist amounts.
Nothing wrong with a $20k seller assist as long as the bank knows about it. --73.141.xxx.xxx |
Cap Gains - Tax question (by Ray-N-Pa [PA]) Posted on: Jan 25, 2022 3:09 PM
Message:
As Don said, your Capital gains is based on Net, but a 1031 is based on gross. Since you are not doing the exchange, as long as your contract has the sellers assist in it and the place appraises for $270,000 you will be okay --24.101.xxx.xxx |
Cap Gains - Tax question (by Ray-N-Pa [PA]) Posted on: Jan 25, 2022 3:12 PM
Message:
Taxes will be your tax bracket times (250-150). You will also be paying tax on the accumulated depreciation times 25%.
You might want to consider your options instead of dismissing the 1031 out the gate. There are also a couple of alternatives to doing an exchange --24.101.xxx.xxx |
Cap Gains - Tax question (by jonny [NY]) Posted on: Jan 25, 2022 3:31 PM
Message:
Also - you pay tax (at closing) on the full amount, not the net (it won't be much but just so you know)... and it doesn't matter if you are using a real estate agent or not... the only difference is that you are "maybe" getting more in return vs the "expense" of their commission for working to sell your property for the highest and best.
It sounds like you may think you are going to hide the money or something but if this buyer hasn't already gone to the bank to see what they can even afford and thinks that "upping" the sale amount so he's going to get money back at closing (which is illegal) then you are getting swindled. Most likely they have to put down 20-30% and they are looking to see if you will "up" the amount to assist them in that. That is NOT the same as Seller's concessions and there is a max (like 6%) and rules about it depending on how much the down payment is, etc.
Get that pre-qual before you do anything, read it and understand it (any terms, conditions, etc) ... and you may want to consult your attorney too. --69.201.xx.xxx |
Cap Gains - Tax question (by Sue [IL]) Posted on: Jan 26, 2022 11:00 AM
Message:
Not an answer to your question, but remember that the gov't doesn't want to wait for the tax money you will owe. If you have large capital gains, you need to look into prepaying your taxes or you could possibly incur a penalty at tax time next year. We've sold a few of our properties over the past couple years and have been making quarterly payments throughout the year in order to avoid the penalties. This could be especially important if you're selling a house this early in the year and thinking that the IRS will wait until April 2023 for you to pay up. --67.184.xxx.xxx |
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