Are taxes owed on property sold in 2014?


Quick Answer

Gains generated by selling property in 2014 are subject to income tax unless specifically excluded, according to the Internal Revenue Service. Losses on sales of business- or investment-use property are deductible, but losses on personal-use property are not.

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Full Answer

Handling sales of property on a tax return depends on the type of property, how it was used and who it was sold to, according to IRS Publication 17. A taxpayer selling his personal residence may be eligible to exclude up to $250,000 of gain from his taxable income, or $500,000 on a joint return. Investment assets such as stocks or mutual funds qualify for a lower tax rate if they were held for longer than a year. Assets transferred to a spouse generate no gain or loss, even if the transfer is incident to a divorce. The IRS provides publications to guide taxpayers through each type of property sale.

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