- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report Inappropriate Content
Do I get taxed on cashout? 1st House. $110K, Refinanced $161k 2yrs later & cashout. Purchased 2nd house w/it. 6yrs later converted 1st to rental, 4 yrs later (2016) sold
Sold property for $158K on 2016. Between years 2-6 (2006-2012) went back and forth between rental and primary (sometime both in same year) also reported depreciation in the last 4 years (about $12K).
Accepted Solutions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report Inappropriate Content
Do I get taxed on cashout? 1st House. $110K, Refinanced $161k 2yrs later & cashout. Purchased 2nd house w/it. 6yrs later converted 1st to rental, 4 yrs later (2016) sold
Try this with pen and paper.[Refinancing will not have an effect on basic numbers for calculation gain or loss]
The formula for calculating your cost basis on rental property is as follows:
* Purchase price
* + Purchase costs (title & escrow fees, real estate agent commissions, etc.)
* + Improvements (replacing the roof, new furnace, etc.)
* + Selling costs (title & escrow fees, real estate agent commissions, etc.)
* - Accumulated depreciation (as reported on your tax forms)
* = Cost Basis
And then calculating your profit or loss would be:
* Selling price
* - Cost Basis
* = Gain or Loss
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report Inappropriate Content
Do I get taxed on cashout? 1st House. $110K, Refinanced $161k 2yrs later & cashout. Purchased 2nd house w/it. 6yrs later converted 1st to rental, 4 yrs later (2016) sold
Try this with pen and paper.[Refinancing will not have an effect on basic numbers for calculation gain or loss]
The formula for calculating your cost basis on rental property is as follows:
* Purchase price
* + Purchase costs (title & escrow fees, real estate agent commissions, etc.)
* + Improvements (replacing the roof, new furnace, etc.)
* + Selling costs (title & escrow fees, real estate agent commissions, etc.)
* - Accumulated depreciation (as reported on your tax forms)
* = Cost Basis
And then calculating your profit or loss would be:
* Selling price
* - Cost Basis
* = Gain or Loss
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report Inappropriate Content
Do I get taxed on cashout? 1st House. $110K, Refinanced $161k 2yrs later & cashout. Purchased 2nd house w/it. 6yrs later converted 1st to rental, 4 yrs later (2016) sold
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report Inappropriate Content