I'm selling a house I had rented out in Florida. How can I avoid capitol gains tax?
146388
How long have you owned the house.  If you have owned the house for more than two years, you shouldn't have to pay tax, however, this is CA law and you needed to have used the house as a residence.  Also, if you invest the money in a different property you shouldn't have to pay.  There is a transfer form.
1168129
Although C Brent is essentially correct about 1031 exchanges... I don't think that he answers your question.\n\nA 1031 exchange is a tax deferred exchange.  This means that when you remove your invested capital from real estate... it will be taxed at your capital gains rate (state, fed & recaptured depreciation).\n\nHere is a link to the capital gains calculator on my site:\nhttp://www.1031store.com/resources/1031_capital_gains_calculator.php\n\nIf on the short term side, you decide to take a little cash out (or portion) of your 1031 exchange proceeds, you will be taxed at your capital gains rate on the portion that you decide to not opt into the exchange.  This is called Boot. (like putting cash in your boot).\nHere is a link to the dictionary on my site:\nhttp://www.1031store.com/resources/dictionary.php\n\nWhen speaking about real estate capital gains,  there are some very good long term effects:\n1. (has to be mentioned) you will be realize compounded growth on your deferred capital gain tax.\n\n2. One of the most over looked advantages, is to move capital from a state where the capital gains tax rate is to another state where the capital gains rate is lower.\n\nLT capital gains rates range from 0% - 12% in different states.  A good example is for an owner who sells property in california (believe 9.3% rate) and buys through a 1031 exchange in TX (0% rate).\n\nThis is where it gets interesting.  Even if you sell the TX property after a year, and realize your gain... you do not owe Cali state tax.  That is tax money saved.\n\nSo in the long run... there can be some real advantages.\n\nI'm going to release this site next week.  You'll be able to contact with experts nationwide and find NNN property to purchase.  Feel free to check it out.  By July 1st, you should be able to contact with some experts too.\nhttp://www.1031store.com
857497
You may minus mortgage interest and any other expense (except for cost for major improvement) form your total rental income and report it as either gain/loss. Unless you have a tax program it is rather time consuming to calculate. Also to take advantage of tax deduction, you may depreciate your house, which takes another form. I have my HR block tax professional do the form and it saves time and definitely worth it. The loss from my rental house offset my adjusted gross income by thousands of dollars every year.
692890
By converting one home to a rental property, you will only lose that tax exemption on the sale of the property ($500 if MFJ or $250 if single).  But the rental property will now get benefits, such as deducting depreciation, repairs, insurance, HOA fees etc that were not deductible before.  The down side is that when you sell this property, you have capital gains issues.  I suggest you consult a tax accountant to learn more about your options,  It will be well worth the fee, beleive me.
50044
no...i just sold my house in Fl...took 9 months to sell it (6 of those months used Home discovery real estate agency which sux..stay away from them) anyways, The market is really slow in Fl right now..so if you are looking to sell put in on the market now to sell by April Hopefully.
355256
At this point, no.\n\nI think your understanding of how it is handled is incorrect.   Assuming you use the house as your personal residence for two of the last five years, you can deduct up to $250k of capital gain if you file anything except MFJ.  If you file MFJ, then you can deduct up to $500k.\n\nIf your basis is $500k, file single, and sell the house for $750k, the gain isn't taxable.  Any amount over $750k would be taxed as long terms capital gains.
709679
The only way to reduce the taxes on the gain on real estate is to do a "Section 1031 Exchange".  The only problem is that you do not receive cash.  You received another piece of real estate.\n\nThere is not a way to reduce taxes on the sale of stocks at a gain.
976939
YOU MAY WANT TO READ THIS ANSWER -- THE OTHERS ARE WRONG !!!\n\nYes, your understanding is correct that when you convert a rental property into a principal residence there may be capital gains consequences.\nIf you have never lived in this property but are contemplating doing so, what you need to do in order to determine whether there is a gain is to obtain a current "fair market value" of the property. In your case, you will want as low a value as possible, so get it appraised or ask a real estate agent to give you a potential selling price given the area, market values, and condition of house (so get this done BEFORE you make any repairs).\nTo determine if there is a CG : take the current FMV and subtract from it the price you purchased the house for (example....if you bought it for 80K and it is valued at 96K when you move in...then your gain is 16K) but from this 'gain' you get to subtract any costs or outlays you incurred (these include legal bills to purchase the property + land transfer taxes + appraisals + capital improvements to the property that were never expensed such as new furnace or new roof or new appliances etc....) so to continue the example...if these totalled 12K, then your CG would now be 16K - 12K = 4K...so you would need to pay tax on HALF of this gain or 2K. The tax would be whatever your tax rate is for your income level x 2K (21%, 31%, as high as 46%).\nIf your CG is actually negative, then there is NO tax owing as there is NO capital gain.\nAlso, here's a small but significant point, if you have not been claiming the rental income on your tax returns these past years, then you certainly would be foolish to all of a sudden claim capital gains.\n\nIn a nutshell, you will want to have as LOW a fair market value as you can currently, have as many outlays accounted for as possible (many of these will be found on the Statement of Adjustments from the lawyer at time of purchase -- also any bills for improvements) as these go to lessen the 'actual' or deemed gain.\nAlso, if you initially did live in the house for a time and then converted to rental...then this may be of benefit as when you converted to rental (there is no CG as it was primary residence) the FMV at that time becomes your ACB - Adjusted Cost Base, which you use to calculate the CG instead of the purchase price.\n\nAlso, be careful reading the advice some are giving -- they really sounded unknowledgable.
26015
That depends on the amount of the gain, your overall tax bracket, the amount of tax already paid for the year, etc., etc. The best strategy is to use a tax planning tool and put all the information in for the year including your filing status (single, married joint, married separate, etc), wages, tax withheld, whether or not you have mortgage interest or property taxes, interest and dividends as well as the capital gains. IF you come up short, you should pay Federal and state estimated taxes. If not, no reason to do so. You could be hit with a small estimated tax penalty which is basically equal to the amount of interest due on the amount of the underpayment if you come up significantly short.
124159
You can't.You may deduct the interest portion of the mortgage payment if you rent the house out.
121716
You will pay capital gains tax on the gain.\n\nYou first calculate how much you will sell it for minus your tax basis. The tax basis is what you bought it for minus how much you have depriciated it over the years. So if you bought it for $100k and depretiated $15000 over some number of years, then your basis is $85k. If you sell it for $150k then you pay capital gains on the difference of $65k.\n\nYou tax braket determines how much you will ultimately pay. You will have to ask a CPA for how to minimize them. You might be able to do an installment sale to save a little money. That way you only pay what you get each year, you can split it into 2 years if you sell some in december and the rest in jan, or do it over several years. This will possibly keep you in a lower bracket each year.
283155
If you make a profit on a house that you own over such a short period of time, then that profit is income and it must be reported as such.  If you hold the property over a longer period of time, the profit becomes "capital gaines" and is taxed differently.\n\nThere are a number of ways, however, to "shelter" your income from tax liability.  If this is something you plan to do on a regular basis, then I would suggest that you consult with an accountant about handling your house purchases and sales as a business venture.
1135699
That depends.  If it was your principal residence, and if you lived in it for 2 out of the last 5 years immediately prior to the sale, then you may exclude up to $250,000 ($500,000 if married filing jointly) in gain from federal taxes.  Excess gains are taxed as capital gains, as is the entire gain if you don't meet the ownership, residency and/or occupancy conditions.\n\nCA law may vary on that.  Consult a tax advisor in CA for full details.
60889
First you want to consult with your CPA or tax preparer over any possible tax consequence.\n\nOtherwise, you can buy a new home with the proceeds from the sale of your old just as if it were any other transaction.  You will still have closing costs as related to the escrow/attorney service and transfer fees and whatnot, but you wouldn't *have* to have a mortgage, provided you have enough money to buy it outright.\n\nOnce your house is sold, your escrow company will either provide you a check for the amount of sales price minus fees, or they can wire those funds directly to your bank account (for a fee, of course), or can wire those proceeds to the escrow company for your new purchase, if you've already selected one.\n\nMake sure you are up-front with your agent when buying a new home if you are buying it with the proceeds from your old one, that way he/she can add provisions to the contract in the event the house you're selling falls out.\n\nBetween advice from your tax preparer and your real estate agent, you should be okay.\n\nDon't forgit, an "all cash offer" is attractive to a prospective seller.  Use it to your benefit.
4919
The have a few options... if the numbers work out then go for it. I believe,  that if your property was aquired from using a 1031 exchange, then you will have to hold the property for 60 months and live in this property for 24 months out of those 60 months to qualify for the tax exemption of gains up to 250k/ 500k if you are married and file joint returns. Depending on your need for the capital, liquidity, and when; would be the questions I would ask \nyourself. If it was me, I would look in to more real estate, maybe a 1031 exchange. What other investment can you not only cash flow from, but is a leveraged asset. Hope this helps.
307802
Sorry, the first answer is not correct.  In order to avoid capital gains tax, you must reside in the dwelling you are selling for a full 2 years of the last 5 you owned it.  The two years does not have to be consecutive.  But, since you have not lived there for two years, you do NOT qualify for the tax break, unless you are moving more than 50 miles to a new job or for unforseen health reasons.
521478
Unfortunately, you can only roll it over into another investment property (Like-kind exchange)  Applying it to your residence will not work.  You have sixty days (before or after the closing) to identify another property and 180 days to close on it.  If you held the property for investment (say yes) and held if for over 12 months, you will pay tax on it at the lower capital gains rates. If you held it for less than 12 months, it is considered ordinary income and is taxed at your regular rate.  If it is less than a year, see if the buyer will wait until the year is up.  Give them soem money back at closing to compensate them for waiting.  It could be worth your while.  To see what the tax might be, use your tax software to estimate what your tax would be.  Sorry to hear about the medical problem, I hope everything works out.  Also, ANY profit is a good profit!!!!!