Subject:  capital gains
Date:  Fri, 17 May 2002
From:  LL

HELP, I am confused! I own one million dollars woth of real estate, have a house on the property, and have made 250 thousand in improvements to the 10 acres in 25 years. The buying cost was $140,000.

There's a $25,000 homestead exemption in Florida. How do I figure capital gains?

Thanks, LL in Florida

Answer

Date:  Mon, 3 Jun 2002

Hello LL,

Either get a referral from a friend or look up "accountants-certified public accountants" or an enrolled agent (EA) under "tax return preparation" in the yellow pages and pay someone to help you. That’s their function.

Good luck!
Mike Gray

We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.