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Any tax experts amoung us?

Discussion in 'Off Topic Threads' started by bluedevil, Dec 11, 2008.

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  1. bluedevil

    bluedevil Active Member

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    I know it's more complicated but just an opinion wanted. Daughter owned a building for 4 years, original loan was $595K and due to divorce and stuff she had to sell for $575K for a loss of $20K. Of course this amount is half hers and half his, if there any capital gains tax or can she take a loss? There are some smart folks on this site and just wondered. Thanks.
     
  2. Bob Hawkes

    Bob Hawkes Well-Known Member

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    Sometimes a divorce may be considered an asset to be carried on the positive side of lifes ledger. Shoot well and often while we can. Bob
     
  3. hmb

    hmb Well-Known Member

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    Was this a rental property producing income? Was the property depreciated in value on tax forms filed during ownership. Was there a profit or loss? There are many parts to this equation. HMB
     
  4. bluedevil

    bluedevil Active Member

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    HMB, it was a small Napa parts store. Small profit per year but lost money on the sale, in fact it was appraised much higher than that. They also lost money on transferring the business and also $40K of inventory magically disapeared when the new owner took over leaving them holding the bag for that too.
     
  5. OregonDon

    OregonDon TS Member

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    She can both losses. Don
     
  6. pendennis

    pendennis Well-Known Member

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    Bluedevil, your daughter should really contact a CPA, and an attorney who specializes in tax. These things get really complicated in a hurry.

    Best of luck to you and your daughter.

    Dennis
     
  7. Jeff P

    Jeff P Well-Known Member

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    Although I have my CPA license...I'm an auditor, not a tax guy.

    but there's a ton of moving parts to this issue, and no one here could ever give good advice. Go spend a couple hundred bucks with a tax accountant - NOT HR BLOCK, a REAL CPA TAX ACCOUNTANT, it will be money well spent.

    and I think this is good advice for ANYONE:

    Go see the accountant BEFORE you make the financial moves like selling the business or getting divorced. When i was in practice (2005 i left and went private), our firm did taxes and audits. I can't tell you how many times someone would come in with a double handful of paper and say "Here's what I did, now can you fix it so i don't pay taxes?"

    Sure, if we had been there on the front end we could have structured things differently....

    Get the advice up front.
     
  8. Dickgshot

    Dickgshot Well-Known Member

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    What's been said here is accurate. Bluedevil, the facts as you have stated them are insufficient to offer even a guess. First you say the building was hers, so why is the gain or loss both of theirs? Second, how much the loan was has no bearing on determining the gain or loss, nor does how much the building was appraised for. Just like selling a gun: How much she sold it for, less how much she bought it for, equals gain or loss.( Reduce the number she bought it for by depreciation she took on her tax return.)
     
  9. bluedevil

    bluedevil Active Member

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    yes, we will be taking this all to a pro,like next week. Just seems to me like she took a loss. Good advice all.
     
  10. M R Ducks

    M R Ducks Member

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    You are right - it's more complicated. A cheap answer is to buy tax software and run all the facts and figures through it. Once you have that, you can decide if you want to pursue a "human" answer. But beware - many of them use the software to discern and answer... Some software back thier output with a promise to pay any penatly associated with a mistake it makes - maybe try one of those.
     
  11. spitter

    spitter Well-Known Member TS Supporters

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    JeffP offered the best advice to see the professionals before we screw things up!

    regards to all,

    Jay
     
  12. Chichay

    Chichay TS Supporters TS Supporters

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    JeffP said it. A tax accountant will not only answer the tax implications of this property sale (net loss or gain, depreciation recapture, etc.) BUT ALSO the tax implications of the divorce and anticipated split of other communal property. Divorce is always painful and it'll be even more painful if accompanied by needless financial loss. Cesar
     
  13. zap

    zap TS Member

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    Simple Question , i think?? Can I take a deduction for the losses in my 401 k over the past severl months??
     
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