Legal Question in Real Estate Law in Florida

Re: Capital Gains Tax

Your friend may want to meet with a real estate lawyer to learn whether a tax-free exchange or 1031 exchange where the tax liability is deferred is an option. Otherwise, based on the information provided, your friend may have a taxable gain when comparing the sales price to the purchase price (cost basis) adjusted for allowable depreciation. It is likely that a capital gain will result upon the sale of the property, but without learning all the facts, I cannot say for certain.

Re: Capital Gains Tax

As I understand your question, the answer is - yes. She owns the rental property which is a capital asset, it has appreciated - and that is the definition of a capital gain which will be realized when that property is sold. Therefore a capital gain tax must be paid.

Re: Capital Gains Tax

Unless she qualifies and plans the transaction as a tax-free exchange, she might have a taxable gain when she compares her sales price to her cost basis adjusted for deprec iation allowed or allowable. In many cases, unless the property has depreciated in value, a capital gain will result. Age has nothing to do with anything.