Do you have to pay capital gains taxes on commercial property?

Answer by  Att4372 (1704)

Gains on the sale of commercial property are usually subject to capital gains tax. The one exception is for real estate developers who pay ordinary income on profits. Ordinary income is higher than capital gains rates. To offset this, developers get to deduct expenses rather than capitalizing them.

Answer by  Dean (4035)

Generally, you must pay taxes on capital gains, regardless the source. In 2010, one has 12 months to reinvest the capital gains without paying any taxes. Tax law changes frequently, so consult a professional for the latest info.

Answer by  Att4372 (1704)

When you sell a capital asset (buildings), you owe tax on any capital gain. Profit is sale price minus original cost and improvements. Gain is profit plus previous depreciation.

Answer by  Christian9247 (5042)

This differs state by state it is relatively the same. Commercial property is considered a business and a state requires a capital gain for such endeavors.