Tax for selling a rental
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Tax for selling a rental (by Matt [TX]) Sep 13, 2023 11:18 PM
       Tax for selling a rental (by Oreo [WI]) Sep 13, 2023 11:24 PM
       Tax for selling a rental (by Robert J [CA]) Sep 13, 2023 11:31 PM
       Tax for selling a rental (by Homer [TX]) Sep 13, 2023 11:31 PM
       Tax for selling a rental (by Jim in O C [CA]) Sep 13, 2023 11:31 PM
       Tax for selling a rental (by Marv [IL]) Sep 14, 2023 8:26 AM
       Tax for selling a rental (by tryan [MA]) Sep 14, 2023 9:23 AM
       Tax for selling a rental (by Plenty [MO]) Sep 14, 2023 9:27 AM
       Tax for selling a rental (by OREO [WI]) Sep 14, 2023 10:40 AM
       Tax for selling a rental (by WMH [NC]) Sep 14, 2023 11:01 AM
       Tax for selling a rental (by Nicole [PA]) Sep 14, 2023 11:33 AM
       Tax for selling a rental (by Marv [IL]) Sep 15, 2023 8:45 AM
       Tax for selling a rental (by Ray-N-Pa [PA]) Sep 18, 2023 7:28 AM
       Tax for selling a rental (by don [PA]) Sep 21, 2023 10:55 PM

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Tax for selling a rental (by Matt [TX]) Posted on: Sep 13, 2023 11:18 PM
Message:

Iím selling a house I have rented out for past 7 years. Before that I lived there for 16 years. There will be quite a bit of capital gain.

To pay quarterly capital gain tax, do I mail in or find a local IRS office? Because itís a large sum, Im afraid to mail.

Can I wait to pay tax next year together with my tax return?

Do I get any tax benefit at all because I lived there before? --70.120.xxx.xx




Tax for selling a rental (by Oreo [WI]) Posted on: Sep 13, 2023 11:24 PM
Message:

No tax benefit unless you lived there 2 of the last 5 years in my understanding.

I don't know about the capital gain and wouldn't want to mail it either, sorry...would love to know as well. --64.83.xxx.xxx




Tax for selling a rental (by Robert J [CA]) Posted on: Sep 13, 2023 11:31 PM
Message:

The IRS and State Tax vampires want you to send money via electronic transfer if it's over a curtain amount. Never by mail. The United States Postal Service have been down graded to 1 step under a locked lunch box for your 6 year old at grade school, kept at the back of the class in a cloths locker. --47.155.xx.xxx




Tax for selling a rental (by Homer [TX]) Posted on: Sep 13, 2023 11:31 PM
Message:

I sold one last year, my tax was around 50k. I didnít want to mail a check, so I logged onto my IRS account and paid online with an electronic check. They pulled the funds the same day from my bank account. If I recall, I had to send the money the same qt of the sale, plus I wanted the money gone as fast as I could, so it wouldnít hurt as bad as holding the money for a while. I only held it 2-3 days from the time I closed on the house. --138.229.xxx.xxx




Tax for selling a rental (by Jim in O C [CA]) Posted on: Sep 13, 2023 11:31 PM
Message:

I am not a CPA. I believe youíll have to re-capture the depreciation and your capital gains will be your purchase price minus any capital improvements subtracted from your selling price. Unless is it a shack out in the woods You should consult a CPA for the correct tax consequences. --99.23.xxx.x




Tax for selling a rental (by Marv [IL]) Posted on: Sep 14, 2023 8:26 AM
Message:

Set up a personal IRS account. Then you can send them money electronically. --67.184.xxx.xxx




Tax for selling a rental (by tryan [MA]) Posted on: Sep 14, 2023 9:23 AM
Message:

You lived there ..... would you consider moving back for a couple years?

Then this all goes away. --198.168.xx.xxx




Tax for selling a rental (by Plenty [MO]) Posted on: Sep 14, 2023 9:27 AM
Message:

What Jim in O C wrote. Ask an accountant don't just start sending money randomly to the IRS. --172.59.xxx.xxx




Tax for selling a rental (by OREO [WI]) Posted on: Sep 14, 2023 10:40 AM
Message:

Yes, must recapture depreciation and determination capital gains. TRYAN's advice to move back for 2 years would reduce your capital gains.

Best to have accountant run the numbers. --64.83.xxx.xxx




Tax for selling a rental (by WMH [NC]) Posted on: Sep 14, 2023 11:01 AM
Message:

The credit for "2 out of 5" years is gone, it's been gone for several years. Now it is based on how long it was a rental and the terms aren't good. Look it up. --50.82.xxx.xxx




Tax for selling a rental (by Nicole [PA]) Posted on: Sep 14, 2023 11:33 AM
Message:

wmh, you said that before and I forgot to look into it. In July I still had to fill out the certification that states the 2 of 5 years. Although it says "principal residence" local companies all have me fill out and sign it every time I sell. This the form, in part ...

UOPA07 CERTIFICATION FOR NO INFORMATION REPORTING ON THE SALE OR EXCHANGE OF A PRINCIPAL RESIDENCE

This form may be completed by the seller of a principal residence. This information is necessary to determine

whether the sale or exchange should be reported to the seller, and to the Internal Revenue Service on Form 1099-S,

Proceeds From Real Estate Transactions. If the seller properly completes Parts I and III, and makes a "true"

response to assurances (1) through (6) in Part II (or a "not applicable" response to assurance (6)), no information

reporting to the seller or to the Service will be required for that seller. The term "seller" includes each owner of the residence that is sold or exchanged. Thus, if a residence has more than one owner, a real estate reporting person must either obtain a certification from each owner (whether married or not) or file an information return and furnish a payee statement for any owner that does not make the certification.

Part I. Seller Information

1. Name:

2. Address or legal description (including city, state, and ZIP code) of residence being sold or exchanged:

e Drive Lancaster, PA 17603

3. Taxpayer Identification Number (TIN):

Part II. Seller Assurances

Check "true" or "false" for assurances (1) through (5), and "true", "false", or "not applicable" for assurance (6).

True False

  (1) I owned and used the residence as my principal residence for periods aggregating 2 years or

more during the 5-year period ending on the date of the sale or exchange of the residence.

  (2) I have not sold or exchanged another principal residence during the 2-year period ending on the

date of the sale or exchange of the residence.

  (3) I (or my spouse or former spouse, if I was married at any time during the period beginning after

May 6, 1997, and ending today) have not used any portion of the residence for business or rental

purposes after May 6, 1997. --98.237.xxx.xx




Tax for selling a rental (by Marv [IL]) Posted on: Sep 15, 2023 8:45 AM
Message:

2 out of 5 still exists for residence.

If you was mixed residence and rental, a percentage is applied to the exclusion. --67.184.xxx.xxx




Tax for selling a rental (by Ray-N-Pa [PA]) Posted on: Sep 18, 2023 7:28 AM
Message:

You have some options to avoid paying:

1031 exchange

121 exchange

or 171 bargain sale

You will end up paying the capital gains, if you elect not to follow any of the above paths in the following year's tax return.

If you are dealing in five or more figures - please research these other paths --24.101.xxx.xxx




Tax for selling a rental (by don [PA]) Posted on: Sep 21, 2023 10:55 PM
Message:

I heard that the pro-ration of the exclusion based on the percentage of time used as a residence vs. business/rental does not apply if the property started out as your residence. --73.141.xxx.xxx



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