AboutAl Romero, Ltrs. Expertise I can answer questions relating to general Real Estate in Pennsylvania including questions relating to Real Estate Investments and Landlord issues. I cannot delve out of my expertise ie;as in the practice of Law.
www.yorkhomeguide.com
Experience 5 years as an Investment property Advisor with a local Investment firm and 3 years of general practice.
Organizations National Realtors Association
R.A.Y.A.C
Pennsylvania Realtors Association
H.A.R
Publications york listings
Central Pa Real Estate Investors guide
Education/Credentials Center of Real Estate Law and Sales Practice.
Ltrs certified.
housevalues agent certification.
Expert: Al Romero, Ltrs. Date: 11/8/2007 Subject: capitol gain tax
Question We bought a new home in July of 2002,rented our previous we bought and lived in since 1984 from Sept 02- Dec 02. It was put up for sale and sat empty for 6 months. We then got into a rent to own agreement which fell through twice. We finally sold it to a third party Feb 07. Will we be respondsable for Capitol gain and how much? We bought it for 11,000 and sold for 28,000 can we deduct any insurance,taxes or improvements?
Answer Patti,
This question is best suited for an accountant, I will answer to the best of my ability.
The capital gains tax exempt rule states that you have had to live in the property 2 out of the last 5 years, from what you tell me you do not qualify for exemption. You will have to pay the capital gains(differnce from what you paid for the property) you can deduct all expenses relating to the transaction (commissions, Taxes and improvements/repairs needed to sell).
Again you are advised to seek competent Tax advisor to better answer your question.
~AL
