NJ - Tax related question - Landlord Forum thread 353289

NJ - Tax related question by Anonymous (NJ) on July 17, 2017 @10:09

I lived in a house for 17 years. now, I have moved out and want to turn that property in to rental property. As per IRS rules, if I rent and sell after 2 years, I will not need to pay tax on profit. If I rent longer then I should.
Now, the problem is that ...i have spent lot more then I get profit means receive more over purchase price but I have not kept any receipt as never thought to rent it. Yes, learned a lesson and keeping all bills for my new house.
My question is..if I transfer property to LLC and sell after 5 years, what will be considered purchase price as per 1099? Value as of today will be my purchase price or original purchase price?

[ Reply ] [ Return to forum ]

Re: NJ - Tax related question by Anonymous on July 17, 2017 @11:08	[ Reply ]

you have tax issues in both nj and federal. from what you've posted it appears you do not understand how it works. you really need to sit down with a cpa and have them explain the rules SO YOU UNDERSTAND.