Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124951  
Subject: Re: Capital Gain - real estate Date: 7/25/2000 7:04 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
<<I recently sold a summer cabin that was owned jointly with a sibling.>>

How did it become jointly held? That's the crux of the issue. If the sib paid FMV for his/her share of the property, the answer would be different when compared to your gift of half of the property to your sib.

<< The income was split between the two of us. >>

As is generally required in these types of transactions.

<<My question is - what sort of capital gains tax will I have to pay on my amount?>>

If this was nothing more than a second home, and not a rental property, your maximum capital gains is likely the preferred maximum rate of 20% (10% if some of your income is in the 15% bracket).

<<Is this amount added to my AGI when I do my taxes?>>

Yup...but then you use a special tax computation on Schedule D to compute the preferred capital gains taxes. You can read more about this in the Taxes FAQ area.

TMF Taxes
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.