inherited rental condo

[mickey143]

What is the name of your state?Virginia
I inherited a condo rental. i received rent from it for two years deciding on what to do with the property. If i sell it now will i have capitol gains to pay or would i have to use a starker exchange and buy another rental.
thank you
mickey

 

[anteater]

What is the name of your state?Virginia
I inherited a condo rental. i received rent from it for two years deciding on what to do with the property. If i sell it now will i have capitol gains to pay or would i have to use a starker exchange and buy another rental.
thank you
mickey

Nobody can tell you if you would owe capital gains, since you said nothing about the cost basis or the likely net proceeds from a sale.

And whether you want to sell and possibly have a capital gains tax liability or do a 1031 is a matter of personal preference.

 

[mickey143]

Nobody can tell you if you would owe capital gains, since you said nothing about the cost basis or the likely net proceeds from a sale.

And whether you want to sell and possibly have a capital gains tax liability or do a 1031 is a matter of personal preference.

on the proerty i inherited two years ago was valued at
210 thousand. i can now sell for 300. my intent is not to pay capitol gains on 90 thousand at 28%. i want to use the gains to build on land i alreay own. would that work?

 

[Snipes5]

You should consult with a 1031 facilitator.

Snipes

 

[abezon]

First, the rental is a long term asset. The capital gains would be taxed at 15%. Any depreciation claimed since you inherited the hosue will be recaptured at a maximum rate of 25%. You'll have to decide if swapping this rental house for another rental house is a good decision financially. A tax-free exchange will cost you at least $1,000 in fees to a 1031 exchange facilitator.