Anybody here have any experience with this? Any pitfalls to watch out for?
About to unload a property that I'll have to pay capital gains on.
Do you pay a full capital gains on the net profit (profit between sales price and adj. cost basis minus real estate fees)?
I'll have the typical expenses for the first few months of the year as it was empty, had to make some repairs, etc. Those expenses along with the usual mortgage interest, taxes, etc. just go in the normal spot in turbo tax and reduce my adjusted gross income as usual and the capital gains tax is just based on what I mentioned above this paragraph?
My capital gains rate is 15% on about 45k after paying commissions. Debating if I want to buy another property (smart move in my opinion) or I could get pretty close to paying off a brand new house I bought 2yrs ago if I pocket it....but I'd pay @6k in capital gains and 3% to CA.
Escrow office already referred me to a company that processes the 1031. Says the charge is $500. Gave me some basic info about identifying the exchange property within 45 days of closing and 180 to close on the new property.
Thanks in advance
About to unload a property that I'll have to pay capital gains on.
Do you pay a full capital gains on the net profit (profit between sales price and adj. cost basis minus real estate fees)?
I'll have the typical expenses for the first few months of the year as it was empty, had to make some repairs, etc. Those expenses along with the usual mortgage interest, taxes, etc. just go in the normal spot in turbo tax and reduce my adjusted gross income as usual and the capital gains tax is just based on what I mentioned above this paragraph?
My capital gains rate is 15% on about 45k after paying commissions. Debating if I want to buy another property (smart move in my opinion) or I could get pretty close to paying off a brand new house I bought 2yrs ago if I pocket it....but I'd pay @6k in capital gains and 3% to CA.
Escrow office already referred me to a company that processes the 1031. Says the charge is $500. Gave me some basic info about identifying the exchange property within 45 days of closing and 180 to close on the new property.
Thanks in advance