Good News for Coop and Condo Owners! If you are the primary owner of a coop or condo which does not have another abatement, you may be able to apply for up to 17.5% off your 2020/2021 property taxes. Please see the New York City Dept of Finance website which explains the abatement and includes the application form.
1. When you sell a capital asset, such as a home, for more than you paid for it, the result is a capital gain.
2. Capital gains are calculated based on your adjusted basis – what you paid for the home, less depreciation, plus any costs you incurred during the sale of the home and the cost of any improvements you made.
3. Capital gains and losses are treated as either long-term or short-term, depending on how long you held the property. If you hold the property for more than one year, your capital gain or loss is longterm. If you hold it for one year or less, the gain or loss is short-term.
4. The tax rates that apply to capital gains depend on certain income thresholds. The maximum tax rate on a long-term capital gain is currently 20 percent. Short term capital gains are subject to taxation as ordinary income. As regular taxable income, short term gains are subject to tax rates that range from 10% to 37% according to the U.S. income tax brackets.
5. Single taxpayers can realize up to $250,000 in tax free gain on the sale of a principal residence. Married taxpayers who file a joint tax return are entitled to an exclusion of $500,000. These exclusions cover any property that has been used as a principal residence for at least two of the five years preceding a sale. The deductions may be taken each time a taxpayer sells a principal residence, although the exemption may not be claimed more frequently than once every two years.