Hi,

I have a question about my income tax. I sold a property last year and with that money I received from sold property I bought couple new properties. I also paid off my remaining mortgage of my house that I live in. Now I do not have any money left as all of the money I received from selling the property I reinvested in the properties (bought new properties). How do I file this on my income tax? What forms do I need to attach to my income tax? thanks for your replies.

what kind of pty did you sell? Rental pty? If it is then, you must recapture the unrecap sec 1250 depre taken as depreciation in the past years and it is taxed as ordinary income at 25% aslongas your tax rate is 25% or higher. If your marginal taxrate was 10% then it;d be taxed at 10%, if your marginal tax bracket is 15% then it ‘d be taxed at 15%. After you subtract the remaining long term capital gains’d be sec 1231 gains so UNLESS your tax bracket is 25% or higher, our long term sec 1231 gains’d be taxed at 0% if your tax bracket is 25%^ or higher thern it’d be taxed at 15%.