|
|
|
|
| Author |
|
|
Home of the Whopper
|
Tax time, sale of rental house
Dang this is confusing.
I am almost about to give up and get an accountant, but figured some of you guys may have already figured this stuff out. Couple of key points: I sold the property for a loss if considering just paid versus sold prices. Depreciation recoup is pretty close to the price of the replacement roof. As an example: Bought for 165k and sold for 150k. 10k in depreciation and 10k for new roof. What is my total gain? 165k - (150k plus 10k dep, minus 10k roof)??? Giving $15k loss? Or is that too easy?
__________________
1968 912 coupe 1971 911E Targa rustbucket 1972 914 1.7 1987 924S |
||
02-04-2020, 08:52 AM
|
|
|
Registered
Join Date: Apr 2001
Location: Linn County, Oregon
Posts: 48,566
|
The perfect way to avoid capital gains...buy high, sell low.
__________________
"Now, to put a water-cooled engine in the rear and to have a radiator in the front, that's not very intelligent." -Ferry Porsche (PANO, Oct. '73) (I, Paul D. have loved this quote since 1973. It will remain as long as I post here.) |
||
|
02-04-2020, 08:55 AM
|
|
|
Fleabit peanut monkey
|
Depreciation taken adjusts your cost basis downward. Capital improvements upward.
Those two are a wash. $165 less $150 selling price is your loss.
__________________
1981 911SC Targa |
||
|
02-04-2020, 09:13 AM
|
|
|
(the shotguns)
Join Date: Feb 2006
Location: Maryland
Posts: 21,687
|
go pay a CPA you cheap ****er.
__________________
***************************************** Well i had #6 adjusted perfectly but then just before i tightened it a butterfly in Zimbabwe farted and now i have to start all over again! I believe we all make mistakes but I will not validate your poor choices and/or perversions and subsidize the results your actions. |
||
|
02-04-2020, 09:16 AM
|
|
|
(the shotguns)
Join Date: Feb 2006
Location: Maryland
Posts: 21,687
|
Possible issues you may not treat correctly:
Did you expense the 'roof' or depreciate it? Were there any suspended losses?
__________________
***************************************** Well i had #6 adjusted perfectly but then just before i tightened it a butterfly in Zimbabwe farted and now i have to start all over again! I believe we all make mistakes but I will not validate your poor choices and/or perversions and subsidize the results your actions. |
||
|
02-04-2020, 09:19 AM
|
|
|
Zink Racer
Join Date: Aug 2005
Location: Spokane WA
Posts: 4,008
|
You also need to factor in any other costs related to the sale. What is your proceeds less selling costs? Was $165k your total purchase with fees? As someone pointed out, did you capitalize the roof? You need to be figuring out the basis, not just what the purchase price was and in turn your proceeds minus selling costs (any seller fees like real estate commissions, title, taxes, etc.)
__________________
Jerry 983 911 SC/Carrera Franken car, 1974 914 Bumblebee, 1970 914-4 |
||
|
02-04-2020, 09:23 AM
|
|
|
|
Fleabit peanut monkey
|
Quote:
TurboTax probably does a pretty good job of walking a person through a straight forward sale. Over/underpaid real-estate taxes or certain utilities (e.g., water) could impact proceeds but not impact the basis.
__________________
1981 911SC Targa |
||
|
02-04-2020, 10:59 AM
|
|
Olive
The Turtle
Ruby
Brownie
1981 Porsche 911 SC Targa
