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Updated almost 6 years ago,
Another Capital gains question
I am selling a multifamily I bought for 100,000. Over the course of owning it I have paid off $25,000 of what I owe on the mortgage.
I paid 25,000 and got a mortgage for the 75,000.
I am now selling it for 200,000.
I am getting really worried about the tax bill.
My questions are (and I appreciate any answers you can give)
1. Do I have to pay tax on the original $25,000 money I invested?
2. Do I have to pay taxes on the $25,000 of the progress I have made on the principal?
3. Do I have to pay tax on the money I pay back to the bank (the $50,000?)
4. I understand that I will have to pay back any depreciation I took on previous tax bills. The formula for this is (building cost/27.5 * numbers of years owned? OR is it this number multiplied by a percentage? (I am staring right at my tax return from 2017 and can not figure out where this number is!)
Thanks for any help!