Need Help on Tax Issue with Townhome Sale
Purchased 2005 at 190K and only worth $210K now. Selling. Overall made little money on place with expenses. Renting now. Little worried about Phoenix market and tired of the hassle of dealing with the rent.
Total Equity is $71K based on $210 value.
$20 K of the 71K would be capital gains (correct)? ($210 - $190)
We just put in about $8 K in repairs. Deduct off of capital gains ?
And there will be tax on the $20K in the form of capital gains correct ?
Both State and Federal ?