Holding part of a mortgage on a sale of rental house. What % on capotal gains will I pay

Do you mean, you sold a house and you are holding the mortgage rather than the buyer going through a separate lender?

If so, your cap gains is based on the sales price of the house. The fact that you took the mortgage has no bearing.

Actually, the OP has NOt provided enough information for us to provide an answer.

The capital gain percentage is based on the OP's overall financial circumstances. It should be either 5% or 15%, but I cannot say for sure until the OP gives us more specifics.

Quote:

---

Originally Posted by AtlantaTaxExpert

Actually, the OP has NOt provided enough information for us to provide an answer.

---

I agree, what he will pay in capital gains depends on his financial circumstances. But it's based on the sale price vs his cost basis, the fact that he took back a mortgage doesn't have a bearing.

True, the second mortgage has NO bearing on the capital gains rate.

But the actual gain realized from the sale is only one component of determing the rate of taxation.

Example: He bought the house for $10K and sold it for $150K. More than likely, that $140K gain will be taxed at 15% regardless of his other income UNLESS he had offsetting capital losses.

However, if he bought at 10K and sold for $15K, the $5,000 gain would be taxed at 5% if that was his only income source.