AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. Kentucky state income tax also. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.
Question I just sold my second home in Louisiana. I lived part time in it since 2004. I purchased it for $143,000 and sold it for $210,000. I did about $30,000 of improvements. Do I have to pay capital gains tax? Can I pay off a rental home and avoid this tax? Can I purchase another rental and avoid this tax? Thanks for your help
Answer Oran,
Thanks for your question.
Since you only lived in it part time, I must assume it was not your primary residence. Therefore, you must pay tax, at capital gain rates on the gain. Paying off another home or purchasing another rental will not help. Since it has been sold, tax will be due on the gain.
