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Buying & Selling Real Estate

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Matt Carozza
  • Investor
  • Richmond, VA
13
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37
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Capital gains tax based on income?

Matt Carozza
  • Investor
  • Richmond, VA
Posted Dec 6 2019, 06:53

I bought a condo in 2015 and lived in it for less than two years and then rented it out for a couple years. This was all before I found BP and knew anything about real estate investing. Once I joined the community and started looking into RE investing, I realized I had to sell it because it wasn't cash flowing and I was actually losing money. However, it did appreciate and I made some money on the deal. I didn't put it into a 1031 right away, and I don't know if I can still can (I sold it about 6 months ago), and I'm worried I'll be taxed for capital gains on it. However, I make less than $37k a year and from the research I've done, I fall into the 0% capital gains bracket because of that. 

Can anyone tell me if I am correct or is it more nuanced than that? I've thought about reaching out to a CPA, but if it's as simple as the research I've done makes it out to be, I don't want to waste the money. 

Thanks in advance for any advice!

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