I had a question recently about the sale of a business property (house/office and land) and how it would be taxed after the sale. In this case, the property owner had used it for his law practice for many years....you've seen the small houses near the "downtown" area of your local community; many are occupied by attorneys as their offices. So, here are the facts. He bought the property in 1984, used it to run his law practice, and now has sold it for about twice the purchase price. For simplicity sake, he bought for $50,000, and sold in 2014 for $100,000. Of course, the property is fully depreciated, so his basis in the property is $0. (Basis = sales price - depreciation) His question for me? How much tax will I owe? It would be nice if I could tell him that the gain is all Long Term Capital Gain(LTCG), taxed at 15% (for his tax bracket)....so you owe $15,000 in taxes on this sale. However, there's this little problem about the depreciation he's taken o
Showing posts from 2015
- Other Apps
Our small firm is very excited about the new website that is now up and running! Please visit us at http://leonardcpa.net and sign up for our newsletter! We hope to provide you with tax tips and planning resources that will help you keep the money in your pocket...and away from the IRS...using all legal, moral, and ethical means, of course!
- Other Apps
I am very excited about our soon-to-be-introduced website, www.leonardcpa.net ! It should be up and running on June 20th, 2015. Our goal is to provide quality tax preparation for both businesses and individuals as we always have, but we are very excited about introducing a new service: Representing clients before the IRS, or Tax Resolution Services! This new service will be prominent in our complete service offering at Leonard G. Nelms, CPA, P.C. I talk to so many people that are just completely intimidated by the IRS. Don't be that person! This blog will be dedicated to helping you understand your options if you have a tax debt problem, and to providing tips for dealing with the IRS. However, if your situation warrants professional help to resolve the issue(s), we would love the opportunity to discuss how we might work for a good outcome for you - whether individual or business. We offer a free consultation, and will clearly explain your options - we will work together!