Investor · Wasilla, AK · Member since 2016 · 4 posts · 0 votes
Hello just found out about Bp and looking forward to using it, also just made my first ever sale and stoked ! I am however worried about getting taxed on my duplex I just sold I owner occupied it the whole time and rented it the whole time what should I expect at the end of the year ?
Writer | Attorney | Accountant · Dallas, TX · Member since 2016 · 150 posts · 116 votes
10y
Congratulations.
You'll have to find someone who understands tax accounting, a bookkeeper/accountant/tax attorney, and just sit down and run through the numbers. As you do, take notes, and I suggest that before you do another investment, have a plan for dealing with the taxation.
In every deal I have ever done, taxation was one of the three or four decision factors for buying, selling, holding, etc. It can represent 30% of your bottom line. You need to pro forma the tax situation before you even buy. You can make money without knowing the tax situation. But you can make a lot more money by understanding the tax aspect.
Investor · Scottsdale AZ · Member since 2015 · 1k+ posts · 423 votes
10y
Hello @Alexander Martinez and let me be the first to welcome you to BP. BP is a great place to network with other investors. It's also a great place to get real estate information by using the free online videos and forums on this site. You came to the right place and I wish you all the best.
Investor · Wasilla, AK · Member since 2016 · 4 posts · 0 votes
10y
If I am RE investing into another property does that change anything ? And I have also read or heard of you live there for more than a certain time you can exclude up to a certain amount ? I was positive on the deal and ended up with money on my bank .
Writer | Attorney | Accountant · Dallas, TX · Member since 2016 · 150 posts · 116 votes
10y
Congratulations.
You'll have to find someone who understands tax accounting, a bookkeeper/accountant/tax attorney, and just sit down and run through the numbers. As you do, take notes, and I suggest that before you do another investment, have a plan for dealing with the taxation.
In every deal I have ever done, taxation was one of the three or four decision factors for buying, selling, holding, etc. It can represent 30% of your bottom line. You need to pro forma the tax situation before you even buy. You can make money without knowing the tax situation. But you can make a lot more money by understanding the tax aspect.
Investor · Wasilla, AK · Member since 2016 · 4 posts · 0 votes
10y
Damien,
• The income you received from your tenant is taxable and needs to be filed using Form 1040 / that has been done every year.
• What was the price you paid for the house vs. what you sold it for / bought duplex for 270 sold for 375
• How long did you live in the house / owned for 8 years
• Did you make any capital improvements / put in a lot of upgrades on both sides most due to repairs , no huge additions , massive amounts of landscaping and dirt work, which I know are not capital improvements - so no