If a 2nd home in a family trust is sold, do I have to pay tax on the gain from when it was  bought, or when?
341493
I would contact a tax professional.\n\nYou might have to pay capital gains tax if it is not your primary residence, but I DO NOT KNOW. I would contact a tax professional.
1120438
Great point TaxGuru... great answer too.\n\nI'm referring to the fact that you might have depreciated the property and refinanced the property (taking cash out) over the years.  You might have only paid off your liens, but still received funds in excess of your adjusted basis.\n\nCalculating your real estate gain takes into account a number of factors.  Your original purchase price could have easily been much lower than your present liens.  Although you wouldn't have had to pay gains tax when taking cash out, you would have to account at the time of sale/title transfer.\n\nI've been working on my 1031 exchange real estate site, and should complete the site by July 4th.  Many of the functions are up and running.. you can calculate your capital gain here:\nhttp://www.1031store.com/resources/1031_capital_gains_calculator.php\n\nAlso, the site will have a place where you can search for professionals who will be able to help you... notably accountants(1031 exchanges are about deferring capital gains).\nhttp://www.1031store.com/experts/1031_exchange_experts.php\n\nI hope that you do not owe anything because this sounds like a tough situation.  Your foreclosure expenses probably ate up an awful lot of your potential gain.  You might want to also contact a real estate attorney to make sure that you are getting a fair shake.\n\nHope that this helps...
60887
Just the fact that the house was put into a trust for you before your aunt's death doesn't automatically mean that you received it before your aunt died.\n\nIt's possible that your aunt put the house into a revocable living trust with herself as both grantor and trustee.  In that case, you would receive the house when she died and you would receive it with a value based on it's value when you received it.\n\nI suspect you will have to pay taxes on any money you made based on that value upon your aunt's death, if the house was sold at a higher price, since you never lived in the home as your own.\n\nI would suggest you see a CPA or tax attorney and bring a copy of the trust document, home appraisal done upon your aunt's death and the home sale paperwork so it can be determined for sure what your situation really is and what you must do concerning the IRS.
456285
The only way is to EXCHANGE them for other income property, called a SECTION 1031 TAX-DEFERRED EXCHANGE.  There are rules and time limits, and you cannot take out any cash without paying taxes on it.  If you cash out and just sell the properties, there is nothing to help offset or eliminate the capital gains tax at both the federal and state levels (if your state has income tax).  For more information, you can go look at the Federation of Exchange Accommodators website www.1031.org.
746229
I'm assuming that you are selling a property that you have been depreciating. I don't know if you are a real estate professional who has been writing off your losses as you go or a passive investor, but I will assume a passive investor.\nYou Willl compute your gain on the sale of the property under normal rules. You gain will then be taxed at 25% to the extent of depreciation taken on the property that you sold. Any gain above this depreciation amount wil be taxed at the 15% capital gains tax rate.\nIn addition this gain will be passive income that will allow you to use your passive losses to the extent of the passive gain which is deductible in full on your return as an ordinary loss.
27709
We recently purchased a new house and wanted to sell, and reinvest the money into a new one... we called the IRS directly to find out if we'd be charged a capital gains tax, and the answer was yes.  If you sell your primary residence within 2 years, you will be charged a capital gains tax.  However, there could be good news...\n\nLast year if you made 49,5k or less you were only charged a 5% capital gains tax.  If you made more than that, you would be charged 15%.  To help maybe smooth the hit over on your $35k taxes...\n\nYou subtract legal, agent, long-term house upgrades from that number and only claim that as profit from the sale.  So if you made 35k from the sale, but your agent's fees were 10k, legal were 5k and house improvements to the old house were 1k, you would only claim 19k.  \n\nPlease, please please double check this with the IRS and/or your accountant.\n\nOh - and if you moved because you either lost your job, or relocated to a different state (and there are some other things), you could be exempt altogether from the tax.\n\nGood luck!!
1001264
If you held them for over a year, the tax rate is 15% (10% if your in the lower tax brackets)  If you held them for less than a year, the gains will be taxed at your effective tax rate.  If you have a loss, you can deduct up to 3000 per year and carry over the remaining losses to offset future gains.
904701
The mortgage is not relevant for taxes.  You need to know your tax basis in the property.  Normally, property received by inheritance is valued at the time of death to determine basis.  This means you should not have a capital gain.  You said the house is "in trust".  If this is true, neither you or your brother own the house, the trust does.  Your ability to "cash out" is determined by the terms of the trust and the decision of the trustee.  You need to consult and attorney who needs to read the trust documents.
393440
She can do this, but it may count as a taxable gift since she will have basically deeded over 1/2 interest in the property to you.\nBetter that she puts the property in a trust with her as the trustee and you as beneficiary.  It can then pass to you with no tax consequence and avoid probate.
710114
I'm thinking you are reading it incorrectly.  The gain from the sale of the real estate goes on NJ Schedule B as does the loss from the stocks.  These net together to give you a final gain/loss on line 4 of Schedule B.  If it is a loss, it is ignored.  If it is a gain, it transfers to line 18 on your NJ-1040 (or whatever line it is for 2006).  When you say they are in different categories, what do you mean?\n\nOK, I read in the instructions where it said, "You may deduct Federal passive losses in full in the year incurred against any gain within the same category of income, but only in the year that it occurred."  I believe that does NOT apply to you.  Had the sale of stock been from a Partnership instead, then it would be from a different category and they would not nullify each other.  But in your situation, since both events go on Schedule B, they do "balance out".  If the result is negative, you will not be able to subtract it from your other income.  If the net result is positive, you must include it on 1040-NJ line 18.
240267
it depend on the following \n1)was it a rental \n2)and was used for your personal residence\n\nif it was a rental the answer is yes it is considered income which is reportable to bothe state and fedral taxes \n\nknow if the property is for personal use and it is your residence and your sold to purchase another home than no but fedral taxes are stil owed unless your new home is valued more than the one you sold in that case you need to consult a tax lawer on them laws
990612
Was that house ever your principal residence in the last 5 years, for 2 years or more?  You get a huge tax savings if it was.  You really need to talk to either a good real estate person or an attorney/CPA and find out the tax consequences.  If it was your principal residence, you do not pay capital gains on the profit you make on the house.  If it wasn't your principal residence for 2 of the last 5 years, you do have to pay profit on the sale.  It can be complicated, you need advice from someone in your area, not a bunch of strangers off the internet.  Good luck!
716030
When you have paid security transaction tax at the time of selling securities (shares), then, \n\nIf you are an investor and not trader:\n\n1. If you are selling the shares after 12 months, then it comes under long term capital gains and you need not have to pay any tax on that gain.\n\n2. If you are selling the shares before 12 months then you have to pay short term capital gains @10% flat on the gain.\n\nIf you are a trader and not an investor:\n\nAll your gains will be treated as trading (Business) and you have to pay tax as per tax sables.  In this case the transaction tax paid by you can be claimed back/adjusted in tax to be paid.\n\nReddy.
659687
if you and your spouse lived in the property for 2 of the past 5 years, you each could exempt $250k from capital gains. another option is using a 1031 exchange to purchase another real estate investment that would defer capital gains and pay you tax advantaged income. consult your local independant financial advisor and you can get a list of 1031 properties. your tax advisor can project the tax for you. you should set aside the $ in a one year cd. good luck
942636
No, the Trust would be responsible for paying the capital gains tax on the gain realized by the Trust upon the sale of the property, in the year of sale
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.
679290
The tax situation you are referring to involves the capital gains tax on your profit (if any). You must live in the home a total of two of the past 5 years to get the exemption. This allows you to not pay tax on the first $125,000 worth of profit on your home.  There are certain exceptions to the 2 year rule, that may allow you to exclude a percentage of your profit in specific cases. \n\nRemember your profit is the difference between the net (after selling costs like real estate commissions and closing costs you pay for your buyer) and your cost basis for the house. Your cost basis is the original purchase price, plus the cost of any improvements to the property.\n\nConsult a tax professional for more specific information.