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Sale of investment property in New york

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    #1

    Sale of investment property in New york

    Hey Bob, this is my 500 posts and i really need help.

    Retired client moved from Ny in aug 07 to Fl and sold rental property. business portion- 66%

    The federal seems to be ok but the state does not look correct,

    basis is zero. depreciation ends this year.. Total depreciation claimed 11220.
    property sold for $530091. Rental income for 2007 is 8791 . NY tax due is $589. I know it cant be right. They have to pay capital gain tax to NY.. Right?

    Any othe NY Pro. please help

    brian
    Everybody should pay his income tax with a smile. I tried it, but they wanted cash
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    #2
    NY conforms to the Federal


    Retired client moved from Ny in aug 07 to Fl and sold rental property. business portion- 66%

    The federal seems to be ok but the state does not look correct,

    basis is zero. depreciation ends this year.. Total depreciation claimed 11220.
    property sold for $530091. Rental income for 2007 is 8791 . NY tax due is $589. I know it cant be right. They have to pay capital gain tax to NY.. Right?
    Doesn't sound right. Why would a property worth $530K only fetch $9K in rental income? (Maybe rent controlled?)

    If I understand correctly, the property is fully depreciated (basis is zero) and was sold for $530K. Business use is 66% so they made about $350K on the rental portion and $175K on the personal portion. Probably took a Section 121 exclusion on the personal portion. The gain on the rental portion ($350K) would appear on the 1040, with the bulk on line 13 (Capital Gains) and a lesser amount (depreciation recapture) on line 14.

    The IT-203 would show these same two amounts on lines 7 and 8. New York does not have a reduced rate for capital gains - he will owe taxes at approximately 6.85% That works out to about $24,000.

    If the federal is correct, did you copy over the income numbers directly to the IT-203, lines 1 thru 18, left column ?

    Comment

      #3
      Originally posted by DonPriebe View Post
      Doesn't sound right. Why would a property worth $530K only fetch $9K in rental income? (Maybe rent controlled?)

      If I understand correctly, the property is fully depreciated (basis is zero) and was sold for $530K. Business use is 66% so they made about $350K on the rental portion and $175K on the personal portion. Probably took a Section 121 exclusion on the personal portion. The gain on the rental portion ($350K) would appear on the 1040, with the bulk on line 13 (Capital Gains) and a lesser amount (depreciation recapture) on line 14.

      The IT-203 would show these same two amounts on lines 7 and 8. New York does not have a reduced rate for capital gains - he will owe taxes at approximately 6.85% That works out to about $24,000.

      If the federal is correct, did you copy over the income numbers directly to the IT-203, lines 1 thru 18, left column ?
      530K is the 66%. it was sold for995k less 35k in expenses. section 121 is ok. they do not have to report that part.
      I will have to go over the IT- 203 and see how I can figure that out.

      thanks

      Any other opinions?

      brian
      Everybody should pay his income tax with a smile. I tried it, but they wanted cash

      Comment

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