Sales price 0,000. Loan balance ,000. Owned property for over 5 years.
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With an annual income of $30,000, how much would capital gains tax be on the sale of commercial real estate?
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3 Responses to “With an annual income of $30,000, how much would capital gains tax be on the sale of commercial real estate?”
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It will depend on your basis in said property. You need the exact date you bought it, how much you paid for it, value of any improvements you made as to their undepreciated balance, yaddah. Anyway, when you arrive at a BASIS you subtract that from the 850,000 and that gives you a gain or loss. The long term gain goes on your Sch D and the tax rate is determined by the amount of gain and your bracket.
Any improvements that were made to the property will be deducted from your income, as well as the original purchase price.
The net gain will be added to your income in the same year.
With those unknowns, no one can answer your question.
Check with a tax accountant.
The loan balance is irrelevant.
How much did you pay for the building 5 years ago and did you make any improvements?
There is also the tax on the depreciation recapture which, in some instances, can be more than the capital gains.