All Forum Posts by: Angie Bart

Also, if I re invest part of the profit in rental property, will that have any impact on the capital gains tax?

Hello! I am receiving conflicting information and am hoping someone here may have insight:

I bought a home in 2000 for 133K. In 2010 I moved and rented the home out. I am now putting the house up for sale.

1) When talking with new tax preparer (too many mistakes with previous preparer) he reviewed prior tax records and stated the following:

  On my previous taxes the preparer listed the value of the home in 2010 as 95K. They steeply depreciated it each year on taxes and included home repair deductions. He stated if the home now sells for 180K I will be charged capital gains taxes on 85K (180-95) which would end up 10K in taxes. He said there may be a way to spread it out to get this lowered to around 7K.

2) My realtor said there shouldn't be any capital gains taxes as I paid 133 and sell for 180 ; take out closing costs, realtor fees and all home repairs would drop this way down but shouldn't be any CAPITAL gains taxes at all.

3) Then I have also read online another viewpoint: That I take sale price of 180 minus the 133 originally paid=47K I spread that out over 17 years= $2,760/yr. Then I only consider the 7 years I rented the house so capital gains should only be paid on 19,320? If this scenario is correct, where would I deduct home improvement costs? From the total 47K or only on the time the home was rented?

Thank you in advance for any help!!!

The annual lease was never fully signed (only 1 tenants signed it, we never signed it due to waiting on the 2nd tenant). We sent it to them several times. So per MN law, they are now on a month-to-month lease.

We have been giving 24 hr notice but they have declined several of the showing times (And they claim they spoke with a tenant legal group who told them they are not required to have a lock box if they are always available to show the property; nor do they have to leave the property during showings if they are paying tenants. I have not been able to find anything to back this claim up.

ezlandlordforms . com is what we used-pulls in state law requirements, and has a lot of addendums you can add if you so choose.

Last fall we decided to sell our rental property and after discussing with the tenants, we decided to wait until after the holidays to soften the impact to them. (The annual lease was never fully signed by both parties, so it is now considered a month-to month lease)

A week ago we informed them we would need to get into the house to take photos for listing, and would be putting on a lockbox for showings. Tenants responded that they had been in touch with a rental legal advice organization and that they were told they did not have to have a lockbox on the house if they would be available to let in realtors/buyers for showings with 24 hrs notice. And furthermore, they did not need to leave during the showing if they were paying rent. They also stated they did not want any photos taken that would show their possessions (couch, beds, etc). When I called the organization they were in touch with, the org would not give out any info to landlords.

I am wondering if anyone knows if there is in fact, any law that states tenants are not required to leave during a showing and/or not required to allow a lock box on the home?

Are we required to get their approval for 24 hr showing request or just required to inform them of showing 24 hrs. in advance?