Bought a really cheap house, now I want to sell it. Taxes?

[Dakoda Spencer]

Hello BP, recently I picked up a really cheap property here in Ridgeley Wv, right across the river from Cumberland Md. I plan on selling it once I get it cleaned out, since I don't have the capital to get it in rent condition at the moment. My question has to do with taxes. I bought it from a private seller with cash. When I do sell it, how much will I have to pay in taxes? Should I try to hold it longer (I think than a year) to have it no longer considered short term capital gains? What would the tax rate be currently if I resold tomorrow? 

[Lance Lvovsky]

1. Taxes would be based on your sales price, less selling expenses, less tax cost basis. That equals your gain.

2. Tax rate is based on your marginal tax bracket. Without knowing your income, impossible to answer. Look up the tax brackets or ask your CPA.

3. If holding for more than 12 months, you get long-term capital gains treatment. Otherwise, taxed as short-term cap gain subject to ordinary income tax rate.

4. Net investment tax (3.8%) may also kick in based on your personal tax situation.