Home Selling in 11354>Question Details

Baggio, Home Seller in 11354

My dad is selling his two family house in queens how much tax will he have to pay once he sells, is it 30%

Asked by Baggio, 11354 Mon Mar 19, 2012

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7
To get a clear and accurate amount please consult your CPA
0 votes Thank Flag Link Mon Jul 2, 2012
Depends if he lived in it for 3 out of the last five years, and if he is married, and how long he depreciated the obvious rental unit for recapture tax, and how long he held the rental property, and if he did any upgrades to the primary unit to add to the basis, and if he intends to to a 1031 exchange with the proceeds from the rental side of the property.

It's complicated.

Antolin Du Bois, CFP.

http://www.RichFaithInc.com
0 votes Thank Flag Link Tue Jun 19, 2012
For an accurate picture of taxes that will be owed, consult with your attorney and or tax professional....
0 votes Thank Flag Link Mon Mar 19, 2012
Best to check with your tax advisor on this one.....there is a transfer tax, as has been stated...and a capital gains tax if the property has been held over a year.....the amount taxed will depend on the use of the property, whether investment or primary residence...again, consult with your tax advisor, a realtor cannot answer this question properly....
0 votes Thank Flag Link Mon Mar 19, 2012
Transfer tax is $4 per $1000 of sales price.
0 votes Thank Flag Link Mon Mar 19, 2012
There are 2 types of taxes he will have to pay.

The first is a transfer tax to NYC and NYS. NYS charges 4/10 of 1% of the selling price. If the sale is for $500,000 or more NYC charges 1.425% of the selling price. Both of these get paid at the closing.

The other tax is a Capital Gains tax. For a single person the first $250,000 of profit is tax free. For a couple on the deed, the first $500,000 of profit is tax free. To determine profit you take the original purchase price, add the cost of improvements and subtract this from the selling price. You're also allowed to deduct your closing costs of the sale to reduce any profit. If you are left with a profit, it is taxed at Capital Gains rates which are generally lower than normal income tax rates. Normally the capital gains tax is between 25-30% when you add the federal, state and city together.

If you need help in selling the house I'd be happy to give you advice. You can reach me at bestsella@aol.com.

Larry
Broker-Owner
Best Seller Realty.
0 votes Thank Flag Link Mon Mar 19, 2012
Cannot answer that question; wouldn't if I knew:
This is a question for your Tax person;
It could depend on how long you've lived there, if it is your Principle residence, (one is not) and what you are doing with the money once you get it.
Get it?
0 votes Thank Flag Link Mon Mar 19, 2012
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