QUESTION
If I sell the 3 flat and buy a condo, or ranch home to live in, will I pay taxes on the money I make from the 3 flat?
Asked on Oct 31st, 2013 on Taxation - Michigan
4 ANSWERS
You might. Consult with your accountant or attorney before proceeding.
Answered on Nov 12th, 2013 at 3:13 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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It depends, but generally yes if you were renting and depreciating. There can be a depreciation recapture and capital gains.
Answered on Nov 07th, 2013 at 1:03 PM
Usually you would pay income tax on the gain on the sale of the property. However, if you structure the transaction under IRC Sec 1031 you can exchange the properties and postpone the income tax until you sell the replacement property.
Answered on Nov 07th, 2013 at 1:03 PM
Business/ Commercial Attorney serving Bellevue, WA
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Lana Kurilova Rich PLLC
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If I understand you correctly, you currently have a property that contains three apartments. I am guessing that you live in one and rent out the other two. If so, at least a part of this property is business property and you may end up paying some tax on the net income from the sale. If in doubt, consult with a tax attorney before you sell, so that you know exactly the tax implications of this sale.
Answered on Nov 07th, 2013 at 1:03 PM