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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > House Taxes
Expert: Helen P. O`Planick, EA
Date: 10/6/2008
Subject: House Taxes
Question
hello, I brought a property from a sheriffs sale, and I am about to sell the property. I received an offer however I did not do any repairs. How do I determine how much taxes I will owe and if I will qualify for any taxes relief. Is there a web site or somewhere I can go to find this. Or could you tell me an estimated percentage. I live In Philadelphia, PA
thank you
Answer
You take your sales price less costs of sale from your purchase price plus cost of purchase. That is your taxable gain.
If you held the property for a year or less, it is ordinary income and taxed at whatever your tax bracket is. If you held it for more than a year, it is a long term gain. Long term gains are taxed at a max of 15%.
PA will tax you 3.07% on the profit.
There is no tax relief on this sale.
Helen, EA in York PA
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