When do I pay capital gains tax?

My sister and I sold our two condos in August of 2017. Each condo sold for $170,000. We bought a condo for $270,000 with 20 percent down. When do we pay capital gains tax?

Real Estate, Taxes
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3 weeks ago
67% of people found this answer helpful

Capital gain taxes are reported on the return for the tax year of the sale.  So for your example, any capital gain taxes due from your condo sale would appear on your 2017 return.  Unless you completed a 1031 exchange, what you did with the proceeds of the sale will not impact the capital gain taxes that would be due (if any).

I can't determine from your question, but if the condo you sold was your personal residence, no capital gains would be due (as long as it was your personal residence for 2 of the last 5 years).  Even if it was rental property, you may not owe taxes on the sale.  It would depend on your cost basis in the property.  Further, the sales price of $170,000 could be reduced by expense of sale, such as real estate commissions.  Check with your local tax professional to assess your exact situation.

Thanks for your question.

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