2006-07-25 06:00:29 · 1 answers · asked by John K 2 in Business & Finance ➔ Renting & Real Estate
It will vary upon what your tax base is. You will have Capitol gaines tax on top of the income tax you will pay at the end of the year. This of course is only if you make a profit from the sale. You can write off all the cost of trying to sell it.
Why would you want to sell it after only 4 months? Has the value gone up that much? I own a rental house in Utah myself and it is a great tax write-off. I basically claim a loss every year on it after everything is figured. Even though I have to report the entire rent as income once they take out the interest on the house loan and the cost of any repairs and all the miles can be written off every time you go there for any reason that wipes out any profit as far as the "taxable" income is concerned. And your tennants are paying the payment while the value is ever increasing.
2006-07-25 06:51:53 · answer #1 · answered by nooodle_ninja 4 · 0⤊ 0⤋
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2016-07-19 17:46:48 · answer #2 · answered by Dianne 3 · 0⤊ 0⤋
You will be taxed on the gain, if any, as ordinary income, not at the capital gains rate, because you have held the property for only four months. What that rate is depends on your total taxable income.
2006-07-27 20:30:28 · answer #3 · answered by dragonwych 5 · 0⤊ 0⤋