Comments on: Is Capital Gains Tax calculated on profit minus selling expenses? http://www.businessian.com/is-capital-gains-tax-calculated-on-profit-minus-selling-expenses-45564.html Business Ian Magazine , Businessmen & Business To Business Guide Wed, 08 Feb 2012 08:42:38 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: William H http://www.businessian.com/is-capital-gains-tax-calculated-on-profit-minus-selling-expenses-45564.html/comment-page-1#comment-73187 William H Mon, 26 Jul 2010 23:03:59 +0000 http://www.businessian.com/is-capital-gains-tax-calculated-on-profit-minus-selling-expenses-45564.html#comment-73187 Yes, you can subtract your costs to sell such as transfer taxes, escrow fees and commission to determine your capital gains. Have you considered the recapture of depreciation at 25%? Do you have to collect a commission? Commissions are ordinary income tax whereas capital gains are a preferential tax item (lower rate of 15%). If you are interested in deferring the gain, then try a 1031 tax deferred exchange. It seems like a buyers market and there are actually properties out there than have cash flow. There are sydicators out there which will selll you a portion of an investment property to complete your exchange. Yes, you can subtract your costs to sell such as transfer taxes, escrow fees and commission to determine your capital gains. Have you considered the recapture of depreciation at 25%?

Do you have to collect a commission? Commissions are ordinary income tax whereas capital gains are a preferential tax item (lower rate of 15%).

If you are interested in deferring the gain, then try a 1031 tax deferred exchange. It seems like a buyers market and there are actually properties out there than have cash flow. There are sydicators out there which will selll you a portion of an investment property to complete your exchange.

]]> By: wartz http://www.businessian.com/is-capital-gains-tax-calculated-on-profit-minus-selling-expenses-45564.html/comment-page-1#comment-73188 wartz Mon, 26 Jul 2010 23:03:59 +0000 http://www.businessian.com/is-capital-gains-tax-calculated-on-profit-minus-selling-expenses-45564.html#comment-73188 For a rental, the profit is computed on the sales price minus your tax basis and costs of sale. This is ordinarily the cost minus depreciation. For a rental, the profit is computed on the sales price minus your tax basis and costs of sale. This is ordinarily the cost minus depreciation.

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