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Selling Rent House

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G

gecko

Guest
I own a rental house in Texas that I want to sell. How much (ballpark) in taxes do I stand to pay. House is on the market for $148,000; and I don't know if I am going to use the money from the sale to purchase a duplex or own my own home. Please help.
 


L

loku

Guest
Sale of rental property

The tax depends on the amount of gain. Basically, the gain is equal to the sale price minus the cost of the property to you. If your tax bracket is 28% or higher, the gain is taxed at 20%. Otherwise, it is taxed at 10%.

If you trade the property for other income property, and the trade qualifies under the tax laws, then there would be no tax.
 

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