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LT Capital Gains owed on Sale of Rental Home owned 40 years
I have a question about a rental home sold in 2017.
We are exploring options to avoid paying
~$40,000 in long term capital gains.
The home was bought in 1976 for $80,000
It was sold in 2017 for $305,000.
It was depreciated annually all the way down to zero.
So the LT Cap Gains is based on $305,000 correct?
Purchased an apartment building in Wisconsin in early 2017.
Will the $50,000 in losses from the apartment building offset the $40,000 in capital gains owed?
For 2017 Apartment Building
The mortgage interest payments + points paid etc. = $90,000
The costs from repairs, utilities and misc. = $60,000
The total expenses for 2017 will be ~ $150,000
The total income is ~$100,000
Losses ~ $50,000
Will the $50,000 loss from the apartment building offset the $40,000 in LT capital gains?
Otherwise total income was only $16,000 from SSI & the rental home that was sold.
As long as the AGI stays below $38,000 (for a single filer) there are no LT Cap Gains owed...correct?
Thank you!
‎June 4, 2019
4:27 PM