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Capital Gains on Residential / Commerical Real Estate
Posted by hringland82 on 07/22/2008 - 11:23
I purchased some residential / commerical property (part of the property is a house I rent out and other part is a building that I rent to a company) in 2002 for about $162,000. At the end of 2007 my total depr. on the property was $28,210. If I sell the property in 2008 for about $400,000, will I have to pay capital gains and if so at what percentage? And why do I have to pay capital gains if it was investment property.
Thank you soo much for your help.
HEATHER RINGLAND
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Capital Gains
Because the "residential" property was rental property and not personal it is handled the same as the commercial rental property where capital gains are concerned. As to the percentage I would use the same percentage you used for the depreciation. You have to pay capital gains because it WAS investment property and there WAS a capital gain.