Home Buying in Brooklyn>Question Details

macutan, Home Buyer in Brooklyn, NY

Co-Op capital gains tax impact on sale of co-op owned unit

Asked by macutan, Brooklyn, NY Wed Sep 25, 2013

Hi there, we are in the process of asking our co-op to sell to us a unit in our building that all of us (shareholders) in the co-op own. The original shareholder and owner of that unit bankrupted many years ago and the bank sold the unit to the remaining shareholders (us) for what it is now considered a very low price (let’s round that price to $40,000).
Can anyone give us an idea of what would be the capital gain tax impact of this sale assuming we buy it for $500,000? I am not aware of how or where to get the tax percentage.
Any guidance will be greatly appreciated,
Best,
macutan

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Answers

3
For accurate information, it's really in your best interest to consult with your tax professional and or tax attorney...
0 votes Thank Flag Link Wed Sep 25, 2013
Dear macutan:

This forum is not a good place to get a specific answer to a question like this. Your best bet would be to speak to the accounting firm that handles the financials of your building. If they cannot give ytou the answer, consider hiring a new accountant. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales/ e-Pro Realtor
Fillmore Real Estate
Office: (718) 252-2000/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Wed Sep 25, 2013
Macutan,

The best person to answer that question would be a CPA. It is an investment property and each person may be in a different tax bracket and be taxed at different percentages.

How many people invested in this co-op? How much did each person invest? What was the percent of return on the sale for each person? All that gets rolled into the tax bracket.

Do us both a favor...contact your CPA...and each investor should do the same.
0 votes Thank Flag Link Wed Sep 25, 2013
Thank you Gail for replying so fast. The Corporation itself owns the apartment. While I understand that each person (shareholders in the corporation) may be in different tax bracket, I was under the impression that the impact will be in the Corporation Income Statement for that year. Which is why I was looking for a estimated answer assuming that a co-op has a capital gain in a particular year.

The proceeds of the sale will likely be used for capital improvements in the building.
Flag Wed Sep 25, 2013
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