We do not own a home, we rent. We do own property and sold it. How do we know what to base the tax on. Can we take the value of the property and subtract that from the sale of the property and pay taxes on the difference?
2007-02-20 13:38:52 · 4 answers · asked by jerry 3 in Business & Finance ➔ Taxes ➔ United States
What if the property is an inheritance. Is the base the assessed value?
2007-02-20 13:48:13 · update #1
You subtract your cost basis from the sales price. Your cost basis is what you paid for the property. If you inherited it, your basis is the fair market value when the bequestor died.
2007-02-20 13:44:46 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 1⤋
The basis would be the Fair Market Value of the property on the date of death for an inheritance.
2007-02-20 22:52:43 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋
Your cost of 'basis' in the property is what you historically paid.
If you paid $10,000 for it, then that is your basis.
You would take your proceeds from the sale less the basis.
If there were any improvements done to the property, those could be factored into the basis as well.
2007-02-20 21:43:06 · answer #3 · answered by Molly 6 · 0⤊ 0⤋
You pay on the difference between what you paid for it and what you made from the sale.
2007-02-20 21:43:24 · answer #4 · answered by Say What? 5 · 0⤊ 0⤋