Qualified 5-year gain

What is the name of your state? South Carolina

I sold Rental Residential Property in 2002 that I originally purchased in 1976 and changed to 1/3 rental in 1989, 2/3 rental in 1994 and 100% rental in 1998. I have a gain of about $2K on the sale of the building and about $8K gain on the sale of the land.

Without the gain on the sale of the property I would owe no tax due to my under $8K income in 2002.

Does the gain on the land qualify for the qualified 5 year gain tax rate?


Thanks for your help.
JJ.

Yes, but how do you figure you only had a $2,000 gain on the building? Did you remember to recapture allowed or allowable depreciation? Perhaps you should see a tax professional.

NUMEROUS improvements to sell

Before I put the house into rental I made many capital improvements. Then I had to do a complete restoration in order to sell the place. Over the years I had tenants that nearly destroyed my house.

Thanks for your advice. I believe I will be in contact with a tax pro before I file.

JJ.