Selling a 3-year old rental property


D

dr_phill123

Let me know if my calculations below are correct:

I bought a property for 130k three years ago and plan to
sell it in the next few months for 150k. So essentially I
owe uncle Sam:

15% * ( difference in selling price )
plus 25% * ( depreciation claimed over the three years )

Is it recommended to higher a CPA for this? Or can I use the
attorney who will do the closing ? I plan to do this several
times in the near future, so would prefer to learn the
correct way to do it myself.

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
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D

Dick Adams

Let me know if my calculations below are correct:

I bought a property for 130k three years ago and plan to
sell it in the next few months for 150k. So essentially I
owe uncle Sam:

15% * ( difference in selling price )
plus 25% * ( depreciation claimed over the three years )

Is it recommended to higher a CPA for this? Or can I use the
attorney who will do the closing ? I plan to do this several
times in the near future, so would prefer to learn the
correct way to do it myself.
Depreciation recapture is the difference between the actual
amount of depreciation you claimed on your tax return and
the amount you would have claimed if you had used straight
line depreciation.

Relying on a real estate attorney for tax advice makes
slightly more sense as relying on a bartender for tax advice.

Find a local tax pro, be it a CPA, an Enrolled Agent, or a
Tax Attorney. You are running a business and a lot of money
is involved. You do not need to have errors on your tax
return

Dick

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
B

Benjamin Yazersky CPA

Let me know if my calculations below are correct:

I bought a property for 130k three years ago and plan to
sell it in the next few months for 150k. So essentially I
owe uncle Sam:

15% * ( difference in selling price )
plus 25% * ( depreciation claimed over the three years )

Is it recommended to higher a CPA for this? Or can I use the
attorney who will do the closing ? I plan to do this several
times in the near future, so would prefer to learn the
correct way to do it myself.

I'm a CPA - I don't do real estate closings - I do tax
planning & tax return preparation & attorneys who do real
estate closing don't do tax planning or tax return
preparation However, I do work along with attorneys on
various matters - usually tax related

So, you should engage your own CPA

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
J

James Lewis

Mr. Adams,

I want to express my gratitude for your continued support
of this group, glitches and all. My experience is that every
change one must make with the ISP leaves more than one set
of teeth marks.

Noderator: Thank you.


I want you to know that I give to my favorite charity
(my wife) every year on your behalf!

Moderator: ROTFLMAO

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
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H

Harlan Lunsford

I'm a CPA - I don't do real estate closings - I do tax
planning & tax return preparation & attorneys who do real
estate closing don't do tax planning or tax return
preparation However, I do work along with attorneys on
various matters - usually tax related

So, you should engage your own CPA
Or Enrolled Agent (EA)!

ChEAr$,
Harlan Lunsford, EA n LA

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
 

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