Do I have to pay Capital Gains?

[James Boreno]

Hello BP Fam,

One of my SFH caught on fire and I'm in the process of selling it to a contractor. Had a quick question.

I purchased the property for $500K about 10 years ago

I'm selling the property for $575K with the Fire Damage

I received an insurance check of $380K for the fire damage.

After Paying off the Mortgage + Escrow + Realtor Fee's, I'll be left with about $150K.

My question is will I get taxed on this $150K?

[Kyle Mccaw]

@James Boreno 

You’ll likely owe taxes, but don’t forget to account for your adjusted cost basis, which factors in the original purchase price, depreciation over 10 years, and any capital improvements. The insurance payout also impacts your taxable gain. Consult your local CPA to calculate accurately and minimize your tax liability.