Home Selling in Boston>Question Details

Back Bay Par…, Home Owner in Back Bay, Boston, MA

Tax implications of selling a deeded parking spot??

Asked by Back Bay Parking, Back Bay, Boston, MA Thu Jan 26, 2012

I bought a condo a month ago and it comes with a deeded parking spot. I wonder if anyone knows the tax implications for selling just the parking spot but not the condo. It will be considered as a short term capital gain, will I be taxed at the full sale price of the parking spot? Thanks.

Help the community by answering this question:

Answers

9
Dean Charles’ answer
@Back Bay Parking We've seen a tremendous amount of interest in Boston parking spaces as an investment. Historical Boston parking space sales data that may help you specifically can be found at http://bostonrealestateobserver.com/boston-parking-spaces/, and separately, multiple articles specific to Boston parking spaces, including discussions of investment pros and cons, can be found at http://bostonrealestateobserver.com/category/boston-parking-…

I hope this information is helpful to you.

Dean Charles
http://entryonlynewengland.com
0 votes Thank Flag Link Tue Jan 22, 2013
Parking spaces in the Back Bay are typically month to month but a year lease is not uncommon. We manage and rent a number of units in the Back Bay and have parking space inquiries all the time. Feel free to contact me at michael@ascendrealtygroup.com with the location and details of the space and we can find you a renter at no cost to you.
0 votes Thank Flag Link Fri Jan 27, 2012
I'm still debating between renting it out and selling it - I hear all the times parking spots are in high demand but I haven't had luck renting mine out (rental price and location are comparable to other people). That makes me think it is not that easy to rent it out. Or maybe it will just take a while, I don't know how long is the norm to rent out a spot...
0 votes Thank Flag Link Fri Jan 27, 2012
I recommend looking at the potential cash flow income from renting the spot out before selling it. Parking spaces are out of control right now. Could be a good investment.
0 votes Thank Flag Link Thu Jan 26, 2012
I'd check into how it would affect your resale before I taalked to my lender. Parking is already hard to get in Boston. Leasing or renting your space may be a better long term solution. You will be selling your unit at some point, and the parking may be very important to the next buyer.
0 votes Thank Flag Link Thu Jan 26, 2012
Then you should also check with your CPA/Tax attorney to look into the ramifications. Do you have a mortgage on the property? If you do then you need to ask about wastage/conversion to your attorney & how those terms may apply to you. Also surprised that the deed or documents with the condo association would not need to make note of the sale. But I'm not an attorney or a CPA both of who can be the only ones to give you specific legal advice & tax guidance.
0 votes Thank Flag Link Thu Jan 26, 2012
Thanks for your quick reply! I did check with my attorney that the mortgage doesn't need to be rewritten and there is no restrictions in the condo doc about selling it. The only part that no one seems to know is the tax implications. How would I find supporting document to prove if it's a gain or loss (since I purchased with condo with the parking spot but am now only selling the parking spot)? What types of document would that be?

Thanks!
0 votes Thank Flag Link Thu Jan 26, 2012
scott is correct on all accounts.
0 votes Thank Flag Link Thu Jan 26, 2012
Well first of all you should consult with a real estate attorney. If you have a mortgage based upon your unit with the parking spot that may void your mortgage. You would have to look at historical data of the value of parking spots for your development and how much of the value of each unit a spot represents. Then you'll need to find supporting documentation for the sale if there is a profit or loss to be aware of tax implications once again an real estate attorney can best advise you. There may also need to be changes to your deed and also see if the condo association has rules governing sale of spots. It's alot more involved than just taking $ from the person buying, there are larger issues involved & you need to consult with experts to give you sound legal advice.

Hope that helps,
0 votes Thank Flag Link Thu Jan 26, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer