NEW: BP Podcast 66: Flips, Apartments, & Protecting Yourself From Professional Tenants with Michael Blank

Hide this

From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.


General Info

BiggerPockets Q&A, Site Questions, & Announcements

1515 topics, 14401 posts — Last Post 04/19/14, 04:46AM

BiggerPockets Exclusive PRO Area

117 topics, 839 posts — Last Post 04/18/14, 05:47AM

New Member Introductions

10886 topics, 85620 posts — Last Post 04/19/14, 04:59AM

Real Estate Success Stories

396 topics, 6154 posts — Last Post 04/19/14, 04:10AM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5935 topics, 46774 posts — Last Post 04/18/14, 11:05PM


643 topics, 5815 posts — Last Post 04/19/14, 03:38AM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/16/14, 03:58AM

Home Owner Association (HOA) Issues & Problems Forum

237 topics, 1609 posts — Last Post 04/17/14, 08:53AM

Do it Yourself

654 topics, 6264 posts — Last Post 04/19/14, 01:54AM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3674 topics, 29452 posts — Last Post 04/19/14, 04:13AM

Real Estate Guru, Book & Course Reviews and Discussions

1133 topics, 11558 posts — Last Post 04/18/14, 11:03PM

Ask About A Real Estate Company

740 topics, 7318 posts — Last Post 04/18/14, 11:52AM

Real Estate Investing

Real Estate Strategies


5603 topics, 43740 posts — Last Post 04/19/14, 04:24AM

Rehabbing and House Flipping

3333 topics, 30990 posts — Last Post 04/19/14, 04:50AM

Real Estate Development & New Home Construction

553 topics, 4683 posts — Last Post 04/18/14, 10:25PM

Innovative Strategies

703 topics, 6027 posts — Last Post 04/18/14, 08:48AM

Tax Liens, Notes, Paper, & Cash Flows Discussion

866 topics, 6677 posts — Last Post 04/18/14, 11:42PM

Rent to Own a.k.a. Lease Purchase, Lease Options

691 topics, 4871 posts — Last Post 04/18/14, 03:32PM

1031 Exchanges

143 topics, 1054 posts — Last Post 04/18/14, 08:41AM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1686 topics, 11285 posts — Last Post 04/18/14, 01:32PM

HUD, VA, and Tax Sales

414 topics, 3089 posts — Last Post 04/18/14, 12:05PM


1214 topics, 10570 posts — Last Post 04/17/14, 02:28PM

Short Sales

1534 topics, 13120 posts — Last Post 04/17/14, 04:44PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7201 topics, 70739 posts — Last Post 04/19/14, 04:55AM

Mobile Homes & Mobile Home Park Investing

638 topics, 5140 posts — Last Post 04/18/14, 03:22PM

Investor Basics

Starting Out

7699 topics, 60435 posts — Last Post 04/19/14, 03:35AM

Investor Psychology

431 topics, 6104 posts — Last Post 04/18/14, 06:08PM

General Real Estate Investing

4716 topics, 37183 posts — Last Post 04/19/14, 02:53AM

Real Estate Investor Marketing

1731 topics, 14093 posts — Last Post 04/18/14, 11:12PM

Commercial Real Estate

Commercial Real Estate Investing Forum

1410 topics, 8985 posts — Last Post 04/18/14, 10:17PM

Multi-Family and Apartment Investing

1109 topics, 9224 posts — Last Post 04/19/14, 03:50AM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

639 topics, 4885 posts — Last Post 04/18/14, 02:57PM

Business Basics

Goals, Business Plans & Entities

831 topics, 7562 posts — Last Post 04/18/14, 04:25PM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2785 topics, 20003 posts — Last Post 04/19/14, 03:34AM

Property Insurance

309 topics, 2045 posts — Last Post 04/17/14, 07:41PM

Personal Finance Discussion

328 topics, 2731 posts — Last Post 04/18/14, 04:33PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2832 topics, 19695 posts — Last Post 04/19/14, 02:40AM

Creative Real Estate Financing

1209 topics, 8768 posts — Last Post 04/18/14, 08:34PM

Crowdfunding Real Estate

35 topics, 461 posts — Last Post 04/18/14, 05:17PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1209 topics, 7988 posts — Last Post 04/18/14, 11:30PM

Bankers, Lenders, and Mortgage Brokers

441 topics, 1922 posts — Last Post 04/18/14, 09:39AM


268 topics, 1678 posts — Last Post 04/19/14, 03:38AM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

1988 topics, 11603 posts — Last Post 04/18/14, 10:42PM

Americans & International Real Estate

161 topics, 566 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

64 topics, 428 posts — Last Post 04/18/14, 04:22AM


Real Estate Marketplace

Real Estate Marketplace

15015 topics, 53950 posts — Last Post 04/18/14, 09:07PM

Real Estate Events and Happenings

164 topics, 2505 posts — Last Post 04/19/14, 12:04AM


Off Topic


2905 topics, 32408 posts — Last Post 04/18/14, 05:31PM

Housing News & Real Estate Market

914 topics, 8351 posts — Last Post 04/17/14, 08:41AM

BiggerPockets Real Estate Investing Summit

97 topics, 1751 posts — Last Post 04/10/14, 02:27PM

BiggerPockets Resources

Forums » HUD, VA, and Tax Sales » Do I pay tax on selling my fha home

Do I pay tax on selling my fha home

7 posts by 3 users


Real Estate Investor · waltham, Massachusetts

I just sell my fha property which i own for 1 yr and six month, just wonder how much tax to pay or do i have too. I want to use the profit as down deposit on two rehab property.

Landlord · Seattle, Washington

You're not entitled to a capital gains exemption because you haven't lived in the house long enough. You'll pay taxes on the gain which is the difference between what you sold the house for less any closing costs and basis you have in the house. The basis is what ever you originally paid for the house plus any capital improvements made to the property.

If you rented any part of the property or claimed a home office deduction you will be subject to some depreciation recapture as well.

Chances are after 1 and a half years you have very little tax to pay.

Real Estate Investor · waltham, Massachusetts

Thanks Charles.
I am a little bit confused on the answer tho

Landlord · Seattle, Washington

When you close the property you won't have to worry about any federal or state income tax. An adjustment will be made for property taxes though.

At the end of your tax year, you will have to report the sale of the home and income tax will be due on any capital gains.

If there is something specific that you don't understand please ask.

Real Estate Investor · waltham, Massachusetts

Hi Charles, here is the full story. I purchased the home via fha in November 2008. It was a duplex. This year i pay tax on my IRS for rented it out. I sold it in April, after realtor fee, and other expenses + the goverment credit I should have $21,600 left for me. So i just wonder how much taxes to pay or should i even pay because I am going to use the money as down deposit toward another home.
Thanks for your input.

SFR Investor · Wheat Ridge, Colorado

The fact you're using the sales proceeds for a down payment on another property doesn't affect the taxes unless you're doing a 1031 exchange. Since you lived in the one you're selling I don't think this applies.

What you wrote is still not the whole story. How much did you pay for this house? How much were the closing costs? How much depreciation did you take or should you have taken?

Here's how you compute the tax:

Basis = what you paid plus closing costs less depreciation.
Deprecation is the amount actually taken or the amount you could have taken, whichever is larger.
Net sales proceeds = amount you sold it for less selling costs.
Note that the net sales proceeds is not related to any checks you may receive when you sell.
Gain = net sales proceeds - basis
Amount subject to depreciation recapture tax = lesser of gain or depreciation
Amount subject to capital gains tax = gain - (amount subject to deprecation recapture tax)

You'll pay the taxes when you file your 2010 taxes, assuming the sale is this year.

Jon Holdman, Flying Phoenix LLC

Landlord · Seattle, Washington

So you have both personal and rental use of the duplex in 2009. Owning this duplex will give you some itemized deductions and some rental income (loss). You want to make sure to claim the depreciation expense because regardless of whether you did or not it will be recaptured when you report the sale on your 2010 tax return.

Jon has described the sales transaction very well. More than happy to go through it if you supply the details. You would need the HUD-1 from your initial purchase of the property as well as when you sold the property. Hopefully you have kept track of any major improvements during the year as well.

Sign up