I am selling a building in Texas for $900,000 if I sell at that price how much will i pay in taxes?

Question

The building was passed down to me by my father a year ago.

Answer 1

Depends on what you mean by passed down. If he died, your basis is the FMV at the time of death, and you pay taxes on the excess.

If he gifted the building, your basis is what he paid for the buillding, and you pay taxes on the excess.

So hopefully your dad died.

Answer 2

I am assuming that said building is not your main home. The basis of the building is its value at the time it became yours. More than one year ago means that any gain will be classed as long term. You will have to obtain the dollar value of the building on the date you acquired it. Here is an example for you: It it was worth $ 600,000.00 on the 1st of February 2005 and you sell it tomorrow you will have a gain of $ 300,000.00 that is taxable to you in this calendar year of 2006. Having had it in your possession for over a year makes the gain taxable as long term capital gain which is a lower rate. Don't forget that any expenses of the sale such as commission or title fees also reduce your taxable gain.

Answer 3

see above.

you would want to hold the property over 1 year to take advantage of lower capital gain tax rates for assets held over 1 yr.
(if bldg was gifted to you)

also, since you are going to have a higher tax liability this year, consider more tax deductions, including charitable donations. consider selling or donating stock, whichever is more beneficial to you.

Answer 4

Depends on what the cost basis for the property was figured at. You need a good CPA.