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    rlwilson312's Avatar
    rlwilson312 Posts: 1, Reputation: 1
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    #1

    Jun 19, 2012, 10:25 AM
    Real Estate question
    I purchased a duplex about 7 years ago and I'm considering selling, but I have some questions first.

    When I made the purchase I remember my cpa asking if I planned on keeping the property for 10 years, something to do with how he was going to depreciate it on taxes. I answered yes, because at the time I thought I was going to keep it that long. Now that I haven't, what are the implications if:

    1. I sell the property for no gain (I'm considering selling it to a family member for the same 119,000 that I paid for it).

    2. I sell the property for a gain (just say 130,000 for instance).

    And yes... I still use the same CPA and I will be consulting that person before actually making any transactions. I'm just in the preliminary stages of thinking about selling and I'm not ready to pay for his services until I need them. Any education I could get here for the bargain price would be greatly appreciated
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
    		  
    #2

    Jun 19, 2012, 04:32 PM
    Quote Originally Posted by rlwilson312 View Post
    I purchased a duplex about 7 years ago and I'm considering selling, but I have some questions first.

    When I made the purchase I remember my cpa asking if I planned on keeping the property for 10 years, something to do with how he was going to depreciate it on taxes. I answered yes, because at the time I thought I was going to keep it that long. Now that I haven't, what are the implications if:

    1. I sell the property for no gain (I'm considering selling it to a family member for the same 119,000 that I paid for it).

    2. I sell the property for a gain (just say 130,000 for instance).

    And yes...I still use the same CPA and I will be consulting that person before actually making any transactions. I'm just in the preliminary stages of thinking about selling and I'm not ready to pay for his services until I need them. Any education I could get here for the bargain price would be greatly appreciated
    If the property has been depreciated for tax purposes you will have a capital gain in either instance. Your CPA will advise you regarding the implications of your tax personal position.

    Always remember tax and accounting advice is worth what you pay for it
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