My brother and I are selling off a house and out buildings off the farm we inherited several years ago. We have rented the house out for years and ready to sell with a few non tillable acres. Anyone knows how the capital gains work? Thanks
Do you have records of everything? What the place was worth when you inherited it, what your expenses have been over the last few years, what the income has been, etc.? Have you been filing taxes all along and reporting the income from the rental? If you've been reporting the rental income and taking depreciation on the house then you should be in good shape. If you haven't been paying taxes on the rental income then you might be in trouble. Good luck. Find a tax accountant in town who handles small stuff like that and be prepared to drag along all of your records.
