2014 bought NY house so friend wouldn't be homeless. Sold house in 2014. D/t friend's debt & underempl no income. Renovations made. I'm non-resident. Capital Gain help?

[Navydrifter]

I'm a full-time resident of FL. Friend, who was not related, lived in the house full time 2014-2024. They remained unemployed or under-employed; never made enough money to afford rent or file taxes. I had purchased the house to enable them to get back on their feet. Their goal was to eventually buy the house at cost from me; it didn't come to fruition. They did finally get a job and moved across state. Significant renovations were made (insulation, windows, flooring, bathrooms...). Subtracting the capital improvement costs I calculated a $97,064 capital gains and paid NY $ 10,590 in estimated taxes on the day of closing. I did visit the property several times to check up on friend and property. I never lived there except for several weeks when I was preparing it for sale. I was never able to take depreciation on the property since it was never a rental. Other than the capital improvements, purchase and sale fees/costs is there anything else to decrease my capital gains???

[Vanessa A]

No.  Since you never actually used the property as a rental, since it was never rented at Fair Market Value, you would not be able to take any deductions from the income other than the capital improvements, purchase and selling fees/costs.  Your travel to there to check up on the property and your friend would not be a deductible expense.  

Since you did own the property for 10 years, this is a Capital Gains Sale, so you will be taxed at Capital Gains Rates instead of Ordinary Income Rates.

To enter your sale of your NY Property , you will take the following steps:

1. Federal
2. Income
3. Show More next to Investment Income
4. Start next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) 
5. Select Other
6. Continue through and select Other again for the type of investment
7. Answer how you obtained your property 
8. You will then enter the selling price, dates and the cost basis of the items

[Navydrifter]

Thank you for the quick reply.  I had already done as you have stated.  Just had hoped I missed something that might have decreased my capital gains:(  

Hopefully these federal and state capital gains taxes won’t get squandered, wish I could have donated them to a better cause!