Let me know if my calculations below are correct:
I bought a property for 130k three years ago and plan to sell it in the next few months for 150k. So essentially I owe uncle Sam:
15% * ( difference in selling price ) plus 25% * ( depreciation claimed over the three years )Is it recommended to higher a CPA for this? Or can I use the attorney who will do the closing ? I plan to do this several times in the near future, so would prefer to learn the correct way to do it myself.
Depreciation recapture is the difference between the actual amount of depreciation you claimed on your tax return and the amount you would have claimed if you had used straight line depreciation.
Relying on a real estate attorney for tax advice makes slightly more sense as relying on a bartender for tax advice.
Find a local tax pro, be it a CPA, an Enrolled Agent, or a Tax Attorney. You are running a business and a lot of money is involved. You do not need to have errors on your tax return
Dick
I'm a CPA - I don't do real estate closings - I do tax planning & tax return preparation & attorneys who do real estate closing don't do tax planning or tax return preparation However, I do work along with attorneys on various matters - usually tax related So, you should engage your own CPA
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Mr. Adams,
I want to express my gratitude for your continued support of this group, glitches and all. My experience is that every change one must make with the ISP leaves more than one set of teeth marks. Noderator: Thank you.
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Moderator: ROTFLMAO
Or Enrolled Agent (EA)!
ChEAr$, Harlan Lunsford, EA n LA
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