? on Capital Gains and Rental Investment Properties

[TandJ61574]

Hi All,

My Dad owns several rental properties and is getting up in age and it's getting too hard for him to maintain the up keep and would like to sell everything but is scared to death of capital gains. He claims he would have to pay Uncle Sam 35-45%???

I did a search on google and also went on the Irs website and it was very confusing. I understand the whole thing about if you live somewhere 2 out of 5 years of owning etc. but these are investment properties that he rents out.

Can anyone that owns properties or knows of someone who does and they have sold, please tell me if this high tax rate is correct?

TIA

 

[TandJ61574]

bump

 

[LindaR]

All I can suggest is that you call an accountant or attorney to ask this question. I would think an answer would be dependent upon where you live (each state has different laws). Can't HE ask his accountant or his attorney? (I'm assuming that he has one...)

 

[TandJ61574]

yes, he already did ask the person (young girl) that does his taxes and she is the one who gave him this info..i told him that i had thought the tax laws had changed but I wasn't sure.

If no one knows i guess he will have to ask his attorney.

 

[WhenUwishUponAstar]

It's my understanding that it depends on how long he has owned the property and how often he sells them off, if he has the time he could do like one every other year without penalty (where I live) so that might be an option.

 

[TandJ61574]

He has never sold any. He has owned one property for over 40 yrs. and the others about 20 yrs.

 

[holycow]

bump

 

[Dan Murphy]

http://www.turbotax.com/articles/SellingYourRentalProperty.html