AboutNeil Johnson (The Tax Dude®) Expertise CPA to answer Federal income tax related questions for individuals, small business owners, estates and trusts. I also specialize in divorce related tax and financial planning matters.
I have extensive experience in nearly all areas of income taxation relating to businesses and individuals. I also regularly serve as a strategic consultant on a wide range of non-tax related business issues.
In addition, I provide aggressive, experienced and skilled representation against IRS challenges at the audit and appeals. I have successfully represented clients against the IRS on issues regarding reasonable compensation, valuation discounts, time value of money, travel and entertainment expenses, innocent spouse relief and personal liability for unpaid business taxes.
Experience Over 18 years in public accounting with an emphasis in taxes.
Education/Credentials B.A. (Accounting) Loyola University of Chicago
Over 300 hours of continuing professional education since June 2001.
Question The home was originally purchased in 1977 by myself and my parents for 34,000. In 1980, I moved out. My name remained on the deed. In 1989, I became sole owner of the home and my father lived in the home until 2003. After a 3 years of improvements $$$, the home was sold this week for 96,000. After all the deductions/fees/agent costs, I walked away with 81,500. The monies are to be divided among 3 other siblings. What is my/our capital gains tax responsibility? How is the amount determined? The assessed value was increase by the county from 49,000 to 62,000 this year. Any info will be appreciated.
Answer Adam,
To better answer your question, I need some additional information from you. First, how did you become the sole owner of the property in 1989. Second if you were the sole owner, I don't understand why you are sharing the sale proceeds with your siblings.
FYI - The assessed value by the county doesn't factor in the determination of taxable gain or loss on the sale of the property. It's just a base figure the county uses to compute real estate taxes.
Regards,
Neil Johnson
The Tax Dude™
www.thetaxdude.com
taxdude@covad.net
