tax Flashcards
1
Q
do you have to pay federal income tax on the profit made off of sale of real property?
what type of income is profit made off of selling real property?
A
Yes. You will have to pay.
Real property is a capital asset. Profit on the disposition of a capital asset is taxable.
if the capital asset is held for more than one year, profits are taxed at long-term capital gains rates.
