All Forum Posts by: Zocky Zhang
Zocky Zhang has started 8 posts and replied 23 times.
Post: what tax form for rental property in philadelphia,
- Posts 23
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Originally posted by @Nathan M.:
It sounds like you might want to hire a CPA. I am not a tax professional, and none of this should be taken as tax advice, it is just my understanding:
yes. actually CPA filed for me last year but this year I'd like to file it myself, i can just follow the forms we did for last year but wonder since now I live in MD, things may get a bit different.
thanks for the advice folks.
Post: what tax form for rental property in philadelphia,
- Posts 23
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Originally posted by @Francis Nguyen:
@Zocky Zhang I was looking into this and came across this. Hope it helps
Yes, you can claim a credit on your Maryland state tax return for local taxes paid in Pennsylvania. Per the instructions to Maryland Form 502CR (under a special note), "If you had wages subject to tax in a locality in Pennsylvania, you may file Form 502CR to claim a state and local tax credit.
thanks Francis
I live in MD, so shouldn't be I claim on Maryland state tax for city tax paid in Philadelphia and income tax paid to Pennsylvanis( since I also need to pay income tax to PA for my rental in Philadelphia )?
I shouldn't pay any of my wage tax to PA or philadelphia since I don't live in PA.
please correct me if i'm wrong.
Post: what tax form for rental property in philadelphia,
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Originally posted by @Sheryl Sitman:
@Zocky Zhang You need to have a Philly tax ID which you can get online - he probably already did that when you got a rental license. I am not a CPA but I believe you will need to file Pennsylvania state tax return as well as a Philadelphia return.
ok. so i figured out, for philadelphia, I have to file BIRT and NPT both.
now the question is, since I paid philadelphia income tax and net profit tax, do I still need to pay PA tax? is any part from Philadelphia tax a credit to PA?
Post: what tax form for rental property in philadelphia,
- Posts 23
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ok. so does any part of PA and Philly tax can be deducted from MD tax return?
Post: what tax form for rental property in philadelphia,
- Posts 23
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I live in MD and have rental property in philly, what pa tax form do i need to file?
Do i need to pay income in both states?
Post: Sold my house profit tax reporting
- Posts 23
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Originally posted by @David M.:
So let me get this straight:
1. You were living in Maryland (renting)
2. You purchased a property in PA. You didn't live in and never rented it. It took 2-3 years to fix it up. You sold it in 2019
3. From the proceeds of the sale, you then stopped renting and bought your current primary residence in Maryland.
Yes sir
Post: Sold my house profit tax reporting
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Originally posted by @John Teachout:
What you owe is long term capital gains tax and it should be paid in the year you sold the property. It's 15 to 20% of the net gain. (the difference between your investment and the sale)
Because you rented the property, you'll also have to pay depreciation recapture. This tax is paid at your normal income tax bracket rate.
Don't delay sorting this all out as penalties and interest will accrue.
Seems I wrongly expressed myself,I didn't rent out this unit we bought in Philadelphia , but we rented to live in another condo in Maryland. So there wouldn't be any rental income or depreciation to report.
The rehab was done in 2016 and 2017 and I paid cash to my contractor, no official receipt for the work, can I just report the capital gain without receipt of those expenses?
Post: Sold my house profit tax reporting
- Posts 23
- Votes 0
Originally posted by @John Teachout:
What you owe is long term capital gains tax and it should be paid in the year you sold the property. It's 15 to 20% of the net gain. (the difference between your investment and the sale)
Because you rented the property, you'll also have to pay depreciation recapture. This tax is paid at your normal income tax bracket rate.
Don't delay sorting this all out as penalties and interest will accrue.
Seems I wrongly expressed myself,I didn't rent out this unit we bought in Philadelphia , but we rented to live in another condo in Maryland. So there wouldn't be any rental income to report.
Post: Sold my house profit tax reporting
- Posts 23
- Votes 0
Originally posted by @David M.:
@Zocky Zhang
Did you live in it for at least two years? Either way it has to be reported. But primary residences have exclusion ($250k single and $500k for married). Had to have been primary home for 2 of 5 past years, and my accountant told me you can’t use as rentals (although others in bp seem to think differently)
We didn't live there, but we paid water and electricity every month. We rented to live somewhere else, so can we claim it as primary residence? I know a couple can have two primary residence.
We sold the house 30 months after we bought it and profit is less than 250k.
What form to use if we need to report any tax
Post: Sold my house profit tax reporting
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Me and my wife bought a house in Philadelphia in 2016 when we were renting a condo in Maryland.
We managed to sell the house in 2019, then immediately used part of the proceed as down payment for our new house in Maryland.
The total profit in between 2016 and 2019 is around 40k after electricity, water, tax and rehab.
So do we still need to report this income tax?