Peak
Footballguy
So I bought a house in Columbus in 2002, and then moved to Cincinnati for work in 2010. With all of the real estate market issues, I've been unable to sell it - thus I became a landlord and rented it for the last 7 years. I rented to one family over the duration of 7 years, and we didn't really make any money on it. The rent was fair market price, and any profit we made went back into maintenance of that property (appliances, siding work, replacement windows, lawn care, etc). With the market having come back around, we were able to sell it quickly for full list price ($10k more than we paid for it). I was told we would have to pay Capital Gains Tax on the sale of this house as it's not our primary residence.
My question for the guys smarter than me on this board is this, how will the tax be calculated? Is it based on the difference/profit made from the sell vs the initial buy ($10k), or do we need to dig into the rent and maintenance dollars over the last 7 years? I know that while we rented it, our taxes showed we took a loss all but one year, and that year we nearly broke even. My FIL and his sister believe we'll likely pay so much in taxes on the sale that any money we may receive from selling the house is gone. I'm thinking if it's 15-25% of the $10k, then it's manageable and not a big ordeal. But that's me being naive and a Holiday Inn Express financial guru with Google access.
Anything I should expect as far as RE Capital Gains Tax goes? My wife wants me to seek out a financial advisor to help guide us through this situation. I told her I know just the place, hence I'm posting here!
Any advice, thoughts, concerns, sarcasm welcome and expected.
My question for the guys smarter than me on this board is this, how will the tax be calculated? Is it based on the difference/profit made from the sell vs the initial buy ($10k), or do we need to dig into the rent and maintenance dollars over the last 7 years? I know that while we rented it, our taxes showed we took a loss all but one year, and that year we nearly broke even. My FIL and his sister believe we'll likely pay so much in taxes on the sale that any money we may receive from selling the house is gone. I'm thinking if it's 15-25% of the $10k, then it's manageable and not a big ordeal. But that's me being naive and a Holiday Inn Express financial guru with Google access.
Anything I should expect as far as RE Capital Gains Tax goes? My wife wants me to seek out a financial advisor to help guide us through this situation. I told her I know just the place, hence I'm posting here!
Any advice, thoughts, concerns, sarcasm welcome and expected.