Ask Terry Questions taxes on capital gains

taxes on capital gains

By Terry Savage on January 31, 2016 | Housing / Real Estate

my taxable income for 2015 was $63,061.37; and I sold some long term real estate for $125,000. do I have to pay a capital gains tax on that sale?

Terry Says:  That depends on whether it is a personal residence, or an investment property.  If it’s a personal residence that you own only in your name, the first $250,000 in gains (after material improvements in the property)  is tax free.  If it is an investment, then a lot depends on whether you have taken depreciation over the years (which must be “recaptured” at sale), or what improvements you have made in the property.  I suggest you consult a tax professional to see what the appropriate tax position is for your situation.



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