Taxes

my wife is 55 years old and thinking of selling her condo which is a rental property. she bought it in 1990 for $120,000 and can sell it for $230,000. what are the tax consequences, and is there an advantage for being 55?

Comments(2)

  • NewKidinTown228th March, 2005

    If your wife sells the condo in a non tax-deferred sale, the profit due to appreciation will be taxed as a long term capital gain. The current maximum long term capital gains tax rate is 15%.

    The profit due to depreciation taken since 1997 will be recaptured at 25%.

    Age of the taxpayer has no bearing on the tax calculations.

  • roboxking29th March, 2005

    But then again was it her or your primary during for 2 of the last 5 years? If so you may not be responsible for anything.

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