CA Taxes Incured Selling Rental In Reno NV.
What would my taxes be to sell a rental in Reno. Both federal and CA state? 4Br 3Ba house bought in 2000 for $215,000 and selling today for $499,900.
Thank you,
Stephen
It gives me a start. I had not heard about the self employment tax being part of a rental sale. I do know that it is subject to capital gains tax though.
Thanks Chris
Finni
You assume correctly.
Quote:
On 2006-04-07 19:45, NewKidInTown3 wrote:
Chris,
I most strongly disagree with you on both points.
ditto (for what it is worth...)
[ Edited by venator64 on Date 04/07/2006 ][ Edited by venator64 on Date 04/07/2006 ]
Thanks, NewKid. That is what I was wondering.
Chris
Your proposal does not give you any tax advantage, but only converts passive income into active income if your "management company" charges a management fee, resulting in higher taxes.
An LLC that owns the property will help shield your personal assets from liability in the event of a lawsuit against the LLC.
For future reference "personal property" is not the same as "personally owned property". If you could pick up your house and take the roof off, then turn the building upside down, everything that falls out is personal property.
What did you do with the properties between the time you bought them and now?
I did full rehabs on both properties.
No, in your situation, interest is not a deduction. You accrue all the mortgage interest you paid on your properties as a component of your basis until the property is sold.
Report all your expenses (purchase price, rehab cost, holding costs, etc) as the "cost of goods sold" when you report the sale of your properties on Schedule C and Schedule SE of your 1040.
Wishful thinking.
In an audit, your 1031 exchange would be disqualified and both transactions will be retroactively recharacterized as taxable events. Back taxes, penalties, and interest will be assessed.