Six years ago I attempted to buy a condo, but the seller tried to void the contract and would not release my earnest money. I decided to take him to court and since then I have bought another place and moved again. We finally settled the case this year. Part of the settlement was to release the property, but since I had no interest in actually purchasing the property I immediately (same closing) sold the property to another party which was all part of the deal. I netted just under $12,000 and never took possession of the property. How will I be taxed on this money? So far I have not received any tax documentation - only a settlement statement.
2006-09-30 05:41:13 · 4 answers · asked by scotchbrandy 2 in Business & Finance ➔ Taxes ➔ United States
Probably a short-term capital gain, but it could make a difference how the transaction was papered. Take the documents to your CPA for analysis.
2006-09-30 09:17:07 · answer #1 · answered by TaxGuru 4 · 0⤊ 0⤋
I'm not 100% sure, but it does sounds like you had a $12,000 taxable gain. Talk to a local tax preparer or CPA, but you might be able to deduct expenses like your legal fees incurred to get the settlement.
2006-09-30 06:07:43 · answer #2 · answered by Carl 7 · 0⤊ 0⤋
Yes if you repost it as income then they will take taxes out of it and at a rate of almost 30%
2006-09-30 05:49:05 · answer #3 · answered by Barry G 5 · 0⤊ 0⤋
Yes it is taxable
2006-09-30 05:42:51 · answer #4 · answered by Freddy 3 · 0⤊ 0⤋