Capital Gains Tax On Rental Property
We will be contacting a CPA but for the mean time we are interested in a ballpark figure and some help.
My family (Parents, Brother, Myself) bought a condo in Florida that we rent out on a weekly basis. It’s rented about 30 weeks a year and the rest is used for family or left empty.
We all fall into the 25% tax bracket
The condo was purchased for
$92,500 on 7/2001
$86,000 is currently left on the mortgage
We were offered $155,000 and will probably accept the offer tomorrow. (Closing would be 2/13/04)
Where does that leave us with capital gains? At this time we are not particularly interested in reinvesting. Maybe so in 2-5 years.
Our primary homes are located in Ohio.
So the numbers I have are
Sale Price 155000
Buyer's Closing
Home Warranty 0
Doc Fees 1085
Commission 9300
________________________
Gross 144615
Current Mtg 86000
________________________
= $69,000
Whatever is left would be divided into 3.
Thanks
Just a ballpark.
Your total taxable profit appears to be about $52K, which makes your share somewhere between $17000 and $17500.
A 15% capital gains tax rate puts your tax liability between $2550 and $2625. Depreciation allowed during your holding period will be recaptured at a 25% rate.