Q:

Are taxes owed on property sold in 2014?

A:

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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