What taxes do I have to pay when selling a Texas Residence where I haven't lived?

Question

I haven't lived there so the 250k (500k for married homeowners) tax exemption doesn't apply. Yet I do own a small business. Am I entitle to any tax exemption for that?

Answer 1

This is a complicated question. A lot of variables go into determining the tax due on any real estate sale. Check out the site below. It should help you figure the tax due on your property.

http://tax.cchgroup.com/FocusOnTax/2005-10/Real_Estate_Sales_and_Exchanges.pdf#search='tax%20sale%20of%20real%20estate%20texas'

Answer 2

If it was just held as a second residence all of the gain would be taxed at 15% long term capital gain rate. If you rented the property and depreciated it you would pay a 25% tax rate for any gain equal to the depreciation taken and then 15% on any gain above that.
If you move there and kive it the house for two years and an day and then sell it you would qualify for the $250,000 exclusion.

Answer 3

Unless the property was used by your business, the business has no effect on any gain. If you have never lived in the residence, it most likely qualifies as investment property. Any gain would be treated as a capital gain. As the first answer said, there are many factors that effect the amount of gain recognized. This is another of the many questions where consulting a professional is recommended.

Answer 4

Was it his essential house? If so, the sale may have a 250k tax loose acquire. So if he sells the condominium for 400k and the condominium has a groundwork of most effective 200k, he's going to now not must pay the tax at the 200k acquire. The secret is making a choice on what the groundwork is within the condominium.