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posted Sep 14, 2020 8:48:42 AM

I bout a house last year for $110,000. If i sell it this year for the same amount, will I have to pay capital gains, or any other taxes?

It was a rent to own agreement with a friend. I have made no money, they just payed me the mortgage and taxes each month, and now I am selling it to them for the same price I payed for the house.

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2 Best answers
Level 15
Sep 14, 2020 8:51:09 AM

The sale gets reported on the Sch D and if there was no profit then you pay no taxes ... that is how our system works.

 

Remember to take into consideration the costs to buy and sell ... don't short change yourself. 

Level 15
Sep 14, 2020 8:52:30 AM

And if this was a "rent to own" situation then the rent should have been reported on a Sch E ... you may really want to seek local professional assistance to make sure you complete the return(s) correctly. 

3 Replies
Level 15
Sep 14, 2020 8:51:09 AM

The sale gets reported on the Sch D and if there was no profit then you pay no taxes ... that is how our system works.

 

Remember to take into consideration the costs to buy and sell ... don't short change yourself. 

Level 15
Sep 14, 2020 8:51:53 AM

You will pay taxes on any gain realized from the sale, If you're selling for the same price you purchased it for, you can expect to pay taxes on the depreciation you were required to take by law, and that's it. With only a year of depreciation, the taxes will be minimal and "may" be offset by rental losses *IF* there are any losses to carry forward. I fully expect you will have carry forward losses. But they will be minimal.

 

Level 15
Sep 14, 2020 8:52:30 AM

And if this was a "rent to own" situation then the rent should have been reported on a Sch E ... you may really want to seek local professional assistance to make sure you complete the return(s) correctly.