Rental Capitol Gains Taxes
Good Morning Bigger Pockets Faithfuls!
I found a great multiy family rental, it has 7 total units and I think I can get it at the right price.
My remaining issue is the tax implications of owning the property, I have the property tax covered with the calculator but I am concerned about the capitol gains tax. The rentals will make approximately $4,375 per month but that will only produce a positive cash flow of roughly $700.... Will I have to pay capitol gains on the entire $4,375 per month or just the $700 per month.
Any suggestions on where I can Learn more about this?
Cheers,
GettingaGrip
Most Popular Reply
I have done all the calculations for you and determined that you will pay $0.00 in capital gains.
I would show you the math but think it would be best for you to figure it out on your own. It is really simple math. Perhaps reading the definition of capital gains would be a good first step.