Comments on: if you buy a rental property and own it for 2 years do you still pay capital gain tax on the sell after 2 year http://www.ramsey-rentals.com/if-you-buy-a-rental-property-and-own-it-for-2-years-do-you-still-pay-capital-gain-tax-on-the-sell-after-2-year/ Mon, 03 May 2010 08:40:34 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: MG@cybtaxes http://www.ramsey-rentals.com/if-you-buy-a-rental-property-and-own-it-for-2-years-do-you-still-pay-capital-gain-tax-on-the-sell-after-2-year/comment-page-1/#comment-842 MG@cybtaxes Wed, 03 Mar 2010 00:42:38 +0000 http://www.ramsey-rentals.com/if-you-buy-a-rental-property-and-own-it-for-2-years-do-you-still-pay-capital-gain-tax-on-the-sell-after-2-year/#comment-842 Rental property is treated as a business; i.e., an activity you entered into for profit. Selling the home, no matter how long you've owned it, is the sale of a capital asset. Own it for more than a year and you'll be taxed at the long-term (more favorable) capital gains rate (5% or 15% depending on how much your other income totals). Sell with less than a year of ownership and you will be taxed at your normal or marginal income tax rate. Good luck! Leasing property is treated as a business; i.e., an activity you entered into for profit. Selling the home, no topic how long you’ve owned it, is the sale of a capital asset.

Own it for more than a year and you’ll be taxed at the long-term (more propitious) capital gains rate (5% or 15% depending on how much your other income totals). Sell with less than a year of ownership and you will be taxed at your normal or marginal income tax rate.

Excellent luck!

]]> By: scott A http://www.ramsey-rentals.com/if-you-buy-a-rental-property-and-own-it-for-2-years-do-you-still-pay-capital-gain-tax-on-the-sell-after-2-year/comment-page-1/#comment-841 scott A Wed, 03 Mar 2010 00:26:31 +0000 http://www.ramsey-rentals.com/if-you-buy-a-rental-property-and-own-it-for-2-years-do-you-still-pay-capital-gain-tax-on-the-sell-after-2-year/#comment-841 some can be capital gains, but there is depreciation recapture some can be capital gains, but there is depreciation recapture

]]> By: irongrama http://www.ramsey-rentals.com/if-you-buy-a-rental-property-and-own-it-for-2-years-do-you-still-pay-capital-gain-tax-on-the-sell-after-2-year/comment-page-1/#comment-840 irongrama Wed, 03 Mar 2010 00:04:47 +0000 http://www.ramsey-rentals.com/if-you-buy-a-rental-property-and-own-it-for-2-years-do-you-still-pay-capital-gain-tax-on-the-sell-after-2-year/#comment-840 Rental property does not qualify for the 2 year exclusion for your personal residence unless you live in part of it. Then you can exclude the gain on the percentage of personal use. Otherwise, you pay tax on the entire gain. Your capital gains rate fluctuates depending on the amount of your income, but it will be capital gains, not ordinary income. Leasing property does not be eligible for the 2 year exclusion for your personal residence unless you live in part of it. Then you can exclude the gain on the percentage of personal use. Otherwise, you pay tax on the entire gain. Your capital gains rate fluctuates depending on the amount of your income, but it will be capital gains, not ordinary income.

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