- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (6)
- Alma Kee, "Realtor Alma"
- Contributions:133
Tax Rate on Long-Term Capital Gains
Capital gain income from assets held longer than one year are generally taxed at a special long-term capital gains rate. The rate that applies depends on which ordinary income tax bracket you fall under.- Zero percent rate if your total income (including capital gain income) places you in the ten or fifteen percent tax brackets.
- 15% rate if your total income (including capital gain income) places you in the twenty-five percent tax bracket or higher.
Let me know if you want help selling it.
All the best,
Alma Kee, Future Home Realty
- wetdawgs
- Contributions:26841
You and your parents need to see an accountant together. In retrospect, it would have been better for them to sell it and give you the cash over several years but what is done is done and now you need to figure out how to deal with it legally.
- Reema Sharma, "ReemaSharma"
- Contributions:927
Speak with a real estate account or the IRS
- Poman13
- Contributions:2
Thanks for the replies guys. The second home was purchased by my parents in 2001for $126k and now Zillow is showing about the same after 10 years for $122k. I don't think my parents paid the tax when they transferred the title to me so I don't know how this plays out. Moving back to that house is not possible. Not sure if it makes a difference if the home is located in Florida. I don't want to sell the house (technically it's a 100% gain in profit for me since I only paid 100 buck) and then realized I have to pay upward of 30% in capital gain tax for the amount I sold....that would be a big chunk of cash lost. Any thoughts?
- wetdawgs
- Contributions:26841
According to the irs website, one has to live in a property for at least two of the last five years for a property to be taxed at the primary residence rate. So, the simplest thing to do is move back into that property for 2 years and a day (to be safe) and then put it on the market. However, your property is much more complicated because you received it as a gift.
Did your parents pay taxes for the difference between the market value and the $100?
Please review this with your accountant or contact the IRS.The accountant would be the best idea as this is quite a special situation.
- Jim Stevenson, "therealtorguy"
- Contributions:1111
Hate to pass the buck, but it seems that your tax accountant would be the best one to advise you on this one. We have no way of knowing how much you have depreciated the home or how much your gain would be. And depending on your income, how severe the capital gain tax would be.
Second home selling question
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.