Quote:
Originally Posted by bigdog
I know that most folks on this Forum are not CPA's, but this is a general question about selling a property, that I'm sure a number of folks know about......
I recently sold my property at the Lake, but will be buying another soon.
Property sold was considered a second home, and which was never rented.
Questions.....
When I file my 2018 taxes next year, would that property fall under 'Capital Gains' for the IRS ?
What about the state of NH taxes subject to pay, if any ?
Thanks !
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I am a CPA but I will make this short and sweet.
If the property was sold and there was a gain.
In other words selling price (less selling expenses, commissions legal fees ect) is more than the cost plus any expenses to improve the property not already deducted on your previous returns then there is a capital gain. If you depreciated the property on your previous returns then the cost is reduced by the depreciation.
So if indeed there was a gain, in 2018 the max federal capital gain rate is 20%. Depending on your resident state there could be capital gain tax there also, but the State of NH only has an interest and dividend tax there is no capital gain tax.