40 years ago my Dad and I bought and sold rental property. At that time, in Texas, if I paid $60,000 for a property, and 2 years later I made a $10,000 gain, capital gain tax at that time, only required me to pay on 40 percent of that gain. So in this case, it’s like i earned $4,000, instead of $10,000. Has this changed?
mercedes
Favorite Answer
You didn't pay 40% of the gain you paid tax at ordinary rates on 40% of the gain and 0% on the rest.
STEVEN F
What you claim was NEVER the law. I suspect you left out 90% of what actually determined your taxable gain.
Slickterp
All profits are taxed on a non residence.
Wayne Z
Tax laws change all of the time.
That is not the current law. You will also have to deal with the tax on the depreciation recapture.
If you have a rental property and are getting ready to sell it, I suggest sitting down with a tax professional prior to selling.
Anonymous
That is not how it works now.