Capital Gains Tax Questions?

Question

I own some property here in Arkansas that I owe around 41k on. I plan on selling it for at least 80k-110k. My question is what should I look for on the capital gains end of the deal. How much am I looking at paying? I've own the property for over 2 years.

Thanks!

Sorry guys I forgot about the purchase price. It was 57k. I take it that I will get w/ 15% and then state tax correct?

Answer 1

question isn't how much do you owe on it, but how much did you buy it for. Your capital gains would be the difference between what you sell it for and what you paid for it. Since you've owned the property for at least 1 year it will be taxed as long-term capital gains, which the maximum rate is 15%.

Answer 2

What matters when calculating your gain, which was what you pay tax on, is the total you paid for it, not what you owe on it. Since you don't give info on that, nobody can tell you about what you'd pay in tax unless the "property" you are selling has been your main home for over two years of the last five - then you would most likely not owe any tax on the sale.

If it's not your main home, you'd pay long term capital gains tax of either 5% or 15% of your gain, depending on your other income.

Answer 3

I agree with other posts that your capital gain will be the difference between the sales proceeds and your basis (purchase price plus capital improvements minus depreciation if any).

Also, if you lived in the house (if it is a house) for 2 of the past 5 years you may not have to pay any taxes at all.

Answer 4

1) Is it your personal residence?

2) What you owe on it is irrelevant. You are taxed on the difference between what you sell it for and what you bought it for. You would pay 15% Capital Gains tax on the profit plus Arkansas tax.

Answer 5

I bought some property in the 80 s for $7,500. I just sold it last January for $20,000. I am retired and have no income except social security. What can I expect to pay in Capital Gains tax?