Tax Question - Home Sale

[osufiji]

Anybody have any insight on what to expect from a tax standpoint on the sale of a rental home? My wife and I each had a home in OK before we started moving around and up until this spring we have rented. Decided to cut ties on both due to the burden of being long-distance slumlord and closing on the second in the middle of June (Closed on other last week). Because my immediate future involves a move every 24 months and my company offers a rental incentive, I am not planning on re-investing it in a property.

My question is what are the tax implications that I should expect for next year? I realize you would need all the info before making an accurate estimate, but was curious if this was an answer that someone on the board could readily answer or if I needed to take this to an accountant.

 

[tcpoke]

You will likely get audited, arrested and rot in jail.

 

[NeekReevers]

You will likely get audited, arrested and rot in jail.

Only if he donated to conservative causes.

I'm not an accountant but I would imagine you will be subject to capital gains on the appreciation of the value of the house and you would have to pay taxes on any recouped depreciation.

 

[trapped_in_tx]

Only if he donated to conservative causes.

I'm not an accountant but I would imagine you will be subject to capital gains on the appreciation of the value of the house and you would have to pay taxes on any recouped depreciation.

I'm not an accountant either, but I can tell you this: the tax code is structured to incentivize real estate investment, which means it incentivizes investors to remain invested in some fashion.

I would definitely take the time to talk to an accountant, and I recommend that you try to find one that specializes in working with real estate investors.