Does capital gains tax apply to commercial property?
Answer:
The gain is taxed under section 1231 of the tax code. The gain is taxed at 25% for the depreciation taken in the past and 15% for the remainder. Both of these rates are considered capital gains rates. If you have taken 1231 losses in the past, the gain may be taxed at ordinary rates.
Capital gains are taxed at different rates but they are still income taxes. Check with a professional.
Capital gains tax yes.
Income tax no, but the capital gains tax would be rolled into your income tax return via Form 4797 and Schedule D.
Remember that you have to recapture the depreciation!
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
Other Questions and Answers: