Will my Mom have to pay income taxes if we buy her portion of our house?
September 13, 2006
Date: Thu, 13 Jul 2006
How do I figure more or less what I will be taxed on if I sell my rental property located in San Jose, California.
Date: 09 Aug 2006
Subtract from the sale proceeds the tax basis of the property and selling expenses, add the accumulated depreciation. This is the gain from the sale. The amount of the gain up to the accumulated depreciation may be federal taxable at 25%. Any additional gain may be federal taxable at 15%. California will tax the entire gain at 9.3%.
There may be some adjustments for these figures based on your other taxable income.
I recommend that you have a tax advisor help you with this exercise, because the facts of your individual situation are important.
We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.
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