Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-02-2018, 01:57 PM
Junior Member
 
Join Date: Feb 2018
Posts: 1
Second Home, rental?

I purchased primary home in 2005. I lived there from 2005-2016. I moved and bought new home August 2016 and this became primary home. I rented home from July to October. I had to evict and suffered loss due to damages. Never lived there again, but used to store property. 2016 Schedule E transferred in to turbo tax. Finally, sold home August 2017. Is this a true rental? Where do I enter the sell of the home?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-03-2018, 11:11 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,091
I purchased primary home in 2005. I lived there from 2005-2016. I moved and bought new home August 2016 and this became primary home. I rented home from July to October. I had to evict and suffered loss due to damages. Never lived there again, but used to store property. 2016 Schedule E transferred in to turbo tax. Finally, sold home August 2017. Is this a true rental?=======I think so UNLESS you reconverted it to your primary home when you disposed of the home as a rental


Where do I enter the sell of the home?========> Sales of rental properties end up on Form 4797.ypu mau use tax return software,i.e, proderies or etc.Aslongas yu sold it as a rental home, then, The IRS has one more surprise for rental property owners. While you owned your rental property, you were entitled to depreciate the building and any improvements. If you sell it for more than the value after subtracting all of your depreciation, you'll have to pay a special 25% aka Section 1250 depreciation recapture tax on the depreciation you claimed. Say, When you have a property with a $125k adjusted basis and you've claimed $55k in depreciation, the depreciated basis is equal to $70k. You pay the 25 % recapture tax on the difference between the depreciated basis and the sales price, up to $125k.i mean I fyour sales price is say $100K then you ned To pay $7.5K of sec 1250 recapture taX; $100K-$70K=$30K^25% If you sell for more than that price, it's a capital gain and subject to the capital gains tax rate.say if you sell it for 150K then your sec 1250 recapture tax amt is13750;$55K^25% and yor LTCGcan be $3750;15%*$25K if your tax ratre is higher than 15% ;if not then no tax on your lTCG of $25K;$80K-$55K

if your tax bracket is higher than 15% then your LTCG of sec 1231 is 15% on the LTCG if yor tax rate is 15% orlower then no CG tax on your LTCG



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Rental home Taxdummy Homeowner Tax 2 07-15-2018 05:32 AM
Depreciation on rental converted to primary home and then converted back to rental blacklab2005 Depreciation 4 04-25-2016 05:28 PM
Is this a residential home or rental home? sunnysea101ca Rental Real-Estate 0 03-22-2016 06:04 PM
Sale of a Rental First Used as a Home Eddo Rental Real-Estate 0 03-30-2012 11:46 PM
My Home is Now Mostly Rental thailen Rental Real-Estate 0 04-11-2011 05:14 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning