All Forum Posts by: Yern Chao

Thank you for all the information. Not sure if we will qualify for partial exemption since we did spend 3 summers in the home in the last 5 years. We also did extensive renovations so we will definitely have to consult a CPA. 

Unsure about Ca capital gains tax.

My scenario:

Bought a duplex 13 yrs ago for $237,500 but haven't lived in it for the last 6 yrs. want to list for $350,000. Will I be paying capital gain tax federally and through Ca? 

I am married and file jointly. Our last years taxable income was a low of roughly $40,000 since we started a business.

Based on my general calculation (not including deductions to make it easier for my understanding) we'll gain $112,500. 

Are we paying capital gains tax based on the $40,000 bracket (0%) or are getting taxed on the $40,000+112,500 (15%)?  

We are looking to reinvest some gains (probably $65,000) into our business not related to real estate. 

When do we pay the taxes? At tax time or when we get the $?

Thanks in advanced. 

thank you, I agree. If we were to go this route we would seek professional advice. Just thinking out loud and trying to figure out all our options before we make a final decision. 

Thanks for the fast reply @nataliekolojid. But I think we would have to pay capital gains since we don't live there and haven't in 6 years now. 

Wouldn't my siblings have to pay taxes on the gift $?

Hello

We are considering selling our duplex in Chico, CA but are worried about paying capital gains on our property. I know to avoid this, we could do a 1031 exchange, but we are not entirely sure we want to stay in the real estate business. 

To make my calculations "easier", say we gain $90k on the home. Is it possible to gift all of it (in $10,000-15,000 increments) to 7 of my siblings (I have 9) to avoid capital gains tax?  I read somewhere that the max allowed per year was $15,000 per person and lifetime gifting was 11 million for us. 

thank you for all the responses. I spoke to a realtor today and sounds like if we decide sell, we'll have to get an agent involved. 

Thanks for the replies, 

After the Camp Fires, the market has gone through the roof. Also, we are getting letters in the mail from individuals looking to buy (most are looking to live in one and rent the other unit), as well as real estate brokers looking for properties for their clients (I believe they have fire insurance $). Just not sure if it something that we should really consider, or if we it is way high. 

I don't know much about real estate, obviously. But I do like to learn, and take the opinions of others into consideration. 

Hello,

Would it be unreasonable to list a duplex in Chico, CA for $425k? One unit rents for $1050 and the other $1500. Water is typically $120 and trash is $40 per month (we pay the two). We have never had any troubles finding renters, and both units have long-time renters who are not looking to move.

Thanks!

We have 2 mortgages and one is at 9%. That's why we are trying to refi.we clear $500 a month after we pay the mortgage, water, trash and pest control. Also, we don't live there. I think that is why our mortgage broker is stuck ar 70%

I just watched the HELOC video, and i believe he mentioned it has to be for current residents. Our duplex has not been owner occupied for 5 years now. But thanks for letting me know about this!