Selling A Rental Property For 145k We Have Had For Approx 20 Years. Bought The Property For $1.00. We Make 80k.

[Delman]

My husband and I "bought" a rental property from a realtive for $1.00...approx 20 years ago. We are selling it for 153K and after realtor fees we end up with $143800. We do have an $86,000 mortage on it. We have never lived in the house. Our income this year will be approx 80,000, maybe a little less. I am trying to figure out what our capital gains taxes will be in NY state

[Olivier]

Your mortgage does not matter(that is, when figuring capital gains, the amount you cleared after the mortgage is irrelevant.)You bought a capital asset for $1, and you sold the capital asset for $145,000. So your capital gain would be $144.999.There may be NY exceptions for rental property, but that would take local research. One question would be: was the rental property considered a separate business, and did the separate business own the property?   ElBanditoRoso 34 months ago

[Quintrell]

Capital gains = the difference between what you bought it for and what you sell it for....prepare to pay up. You've had income/profits for 20 years....time to pay the taxman   Skippy? 34 months ago