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Author: LoTax One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120784  
Subject: Re: Capital Gains on an Investment Property Date: 12/10/2001 6:56 PM
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What will the rest of your 2002 tax return look like?

Unless you expect to have capital losses [whether current or carryover] in 2002 to shelter the gain from the sale of your house, you should be making *other* plans about the sale.

Since you will not have held [owned] the house for more than a year, the gain from its sale will be *short* term capital gain, and will be taxed as if it were ordinary income. That is, unless you have capital *losses* [short-term or long-term, they both work for this purpose] to shelter [offset] the $70,000 gain from the sale of the house.

I'm happy you're making a bunch of money on the sale, but I **know** you don't want to give 40 or maybe even closer to 50% of the gain to the government!!!

Project your taxable income for 2002, including the gain from the house, and including any current or carryover capital losses you'll have, and you'll see that you will save a *lot* of taxes either because you have a heckofalotof capital losses [for which I'm sorry] or by postponing the sale [settlement] of your house by a month or two.

C'mon back.
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