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Tax Law (Questions About Taxes)/capital gains tax in florida


in 2000 (single man ) father built house $125,000  2005 put me on as right of survivorship ( we are all Florida residents ) dad died au. 2010 i transferred dead to myself & wife. we sold for $120,000 in 2012.after reality fees we got $112,000 we did not live in house. had to go through an eviction to get his friend out of house ( never received any money ) we then had to clean & repair house and put on market. it sat empty till sold. we file joint. we both are retired i get pension & s/s my wife just s/s. our attorney said we needed to ask a cpa.


You didn't phrase it as a question, but I suppose you want to know about the capital gains from your sale.

First, your basis (or cost) is a dual basis.  When your Father gave you half the house in 2005, that was a gift, so your basis in the one-half interest is on-half of his cost (125,000/2 = $62,500.

Then when he died, you inherited the other half.  Since it was inherited property, your basis for this half is the fair market value as of date of death.  Your $62,500 plus half of its value at date of death is your cost basis in the property.  Any capital repairs can be added to your cost.  Capital repairs are things such as a new roof, structural repairs and the like.  It would not include painting, replacing broken windows, installing new locks and the like.

The difference in your basis and the proceeds of the sale is your long-term gain or loss, reported on Schedule D of the 1040.  Since Florida has no income tax, there are no state tax consequences.

Hope this helps.

John Stancil, CPA  

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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