Real Estate/Capital Gains
I received a 2 flat in the Belmont/Craigen neighborhood via a trust. It is not my primary residence, and I have not rented out in the years after it became mine (approx. 6.5 yrs.). I would like to sell but need to know more about capital gains. I am married and have 2 grow children. Any information on what options I have in regard to reducing/avoiding the amount I would have to pay. I am 65 yrs single income and planning to retire in the next few years.
Terry Says
What do you mean, you “received” it?? Was it a gift? An inheritance? Were you the beneficiary of a trust set up by someone who passed away?
If you received it upon the death of the grantor of the trust, your taxable “cost basis” is the value on the date of death. It will be tough to go back to determine that, unless you can get a local realtor to write a reasonable estimate of the valuation of that property six years ago.
Since you did not use it as an income property, did not take depreciation on your tax returns, your tax obligation on sale is a simple “capital gains tax.” It will be a long-term capital gain.
For 2025, there is a 0% tax rate for individuals earning up to $48,350 and a 15% rate for single filers earning between $48,350 and $533,400.
