Where Do I Post With Questions About Taxes?
i want to sell a house which i will have owned for only 1 month. i bought the land and had a home built on it. i want the money and dont care how much the taxes are because the profit will be significant. i live in south florida. what % of taxes will i have to pay... thank you?
Any gain you receive will be taxed according to your tax bracket.
is capital gains tax a seperate tax than the regular tax ill pay for the sale?
john,
Yes, capital gains and ordinary income are two different and distinct flavors of taxes. Only one flavor applies to your sale profit.
In your situation, your holding period gets you a short term capital gains tax rate which happens to be the same rate as your ordinary income tax rate.
Sell the house you are living in and move into the rental house. If you have lived in the house 24 + months it will qualify for Section 121 – Exclusion of Gain on Sale of Primary Residence.
great advice. I was looking for some confirmation. I was hoping that there was a "school loan" payoff exception that the gov would allow the transfer without tax penalties. Thanks again.