If we bought a rental property for $420k and sell it for $520k, what is the amount that would be taxable for capital gains? We would like to income split and are retired

rick5354 · ‎October 30, 2019

Our individual retirement income is also equal. One is not higher than the other.

Delphision · ‎October 30, 2019

If the profit is $100,000 you would each pay tax on $50,000 assuming there are no other adjustments, in which case, it would be somewhat less.

View solution in original post

rick5354 · ‎October 30, 2019

Thank you. So effectively, we are paying tax on 50% of the profit, not 100% of the profit?

Delphision · ‎October 30, 2019

To clarify, you would each report capital gains of $50,000. The actual taxable amount would be $25,000 each added to your taxable income on each of your returns.

rick5354 · ‎October 30, 2019

Great, thanks for the clarification.

If we bought a rental property for $420k and sell it for $520k, what is the amount that would be taxable for capital gains? We would like to income split and are retired

Investors and rental owners

Investors and rental owners

Investors and rental owners

Investors and rental owners