Property sale on ebay

[TekChik]

Originally posted by: skarydrunkguy
i was just wonding if anyone that might also happen to reside in michigan has ever sold land on ebay. you people must get your jollies from excessive and useless banter.

and with that, he was never heard from again

welcome to ATOT

😉 :wine:

 

[SweetSweetLeroyBrown]

Originally posted by: skarydrunkguy

Originally posted by: SweetSweetLeroyBrown
Also, it's not the seller's responsibility to file the deed transfer at the local registrar. That's the buyer's responsibility.

Go to nolo.com...lots of good info there.

At least I've got more than a year to figure out how my taxes will be affected by all this.

Taking a year to figure out how this affects your taxes is over kill...well income tax anyways.

Is this property your primary residence (meaning you lived there 2 years out of the past 5 years)?
If so, the first $250,000 profit you make from the sale of the property is income tax free (firts $500,000 if you are filing a joint return)

If it is not your primary residence, then the property is considered investment property.
In this instance, the difference between your purchase price (basis) and your sell price = taxable income. Multiply that taxable income amount by your personal income tax rate.

IF you received this property as a gift from a living person, then the purchase price (basis) is the price that the previous owner paid. Apply that above.

If you received this property from a dead person (will) then the there is no purchase pirce, thus any profit you make from the sale is income tax free (this is awesome tax wise).

 

[SweetSweetLeroyBrown]

oh...top tax rate is now 35%...down from 38. something percent thanks to Bush!

Yay

 

[skarydrunkguy]

Originally posted by: Quixfire

Originally posted by: skarydrunkguy
i was just wonding if anyone that might also happen to reside in michigan has ever sold land on ebay. you people must get your jollies from excessive and useless banter.

I have sold and bought land in Michigan but not on Ebay. Do you have a deed or title to the land?

Yeah, I have the deed. I own the property. I got the property a couple of months ago for the purpose of turning it over in a couple of months for some profit (mission accomplished). Looks like I'll have to pay 35% on it. Damn gubment, always stealing the working mans bankroll.

 

[SweetSweetLeroyBrown]

WOAH!

You're seeling yhour investment property after holkding it for less than a year?

Be prepared to be hit with SHORT-TERM Capital Gains tax as well as income tax!!!

 

[SweetSweetLeroyBrown]

Add another 10% of the sales price since you are selling in less than 1 year.

It would only be 5% if you sold it after one year.

 

[skarydrunkguy]

yeah, but the taxes on the property over that one year would add up to more than the additional income taxes, I think, so overall, this is a better move. i also heard something about being able to deduct the difference in market value to sale value as against the profits made in purchase value to sale price... or something like that. i think next year will be a HR Block year. my first ever.