- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement taxes on rental house being sold
I have a rental home that was inherited from my dad that I’m going to sell. Will that affect me social security income or taxes next year
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
Hi Grant,
It depends on whether you sell the house for a gain and the magnitude of the gain.
Up to 85% of your social security income can be subject to income tax if you have other income which is above a certain threshold, depending on your filing status. The benefits planner from the SSA in the link below explains the calculation of your taxable social security income: https://www.ssa.gov/benefits/retirement/planner/taxes.html
So if you sell the house for a gain, it increases your combined income and that may result in some of your social security income being subject to income tax.
If the gain on the sale of the house is above the threshold for filing an income tax return in NC, then you may also have to file a state tax return in NC.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
@GrantFonda3 wrote:
I have a rental home that was inherited from my dad that I’m going to sell. Will that affect me social security income or taxes next year
I am sorry for your loss.
When did you inherit the rental property? Your basis for figuring any gain is the fair market value on the date of death of your father. If you sell within several months after your the death of your father (to an unrelated third party) it is likely that your sales price (less selling expenses) will be the same, or less, than your basis which means you will have no gain or, possibly, a small loss.