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Updated over 7 years ago,
203K Duplex Sale & Cap Gains
I bought a duplex financed by an FHA 203K loan on May 15th, 2016 and lived in it until December when I had to move and I started renting it out. I bought it for 115k and renovated it for about 35k within the 203k and another 5k of my own money. I have someone under contract to buy for 172k.
My question is, what cap gains taxes am I going to have to pay? Do I have to pay from the 115k to the 173k? Or do I include all of the renovation costs into it as well?