I recently sold some property in Pecos County, Texas and am looking for a good CPA to handle capital gains. Any suggestions?
I am not a CPA, but pretty knowledgeable when it comes to tax stuff, so I may be able to help.
I'm concerned about when and how Texas will tax me on this property.
Well it depends on your current income, how long you owned the property, etc. Can you give me some more info. You can buy other investment property and do a 1031 exchange, but if you already sold it and have "touched" the money, you can no longer do that.
Texas will not tax you unless there is production
now that's great news. Thanks so much.
The sale has been closed and the money has been deposited. Do you know how the Federal taxes work?
Any CPA can figure Capital Gains for you
Texas has no income tax on individuals and so no tax will be due to the state on either royalties or capital gains. If you owned surface or producing minerals, then you should have been receiving annual property tax statements from the county. If the property was owned in an entity a corporation or partnership and had high income, then you might owe franchise tax to Texas. You will owe tax on capital gains to federal government.
Also, if you live outside Texas and pay state income tax to another state, then you may owe tax on capital gains to that state. Consult your CPA.
Great news on Texas. Thanks for your reply.
Do you think I should look for a CPA in Texas who might be more familiar with oil and gas property sales? I live in Arizona.
Capital gains is capital gains
Use your AZ CPA for tax questions.
My experience is about 40% to the feds. I didn't have much of a cost basis as the property was inherited many years ago. I live in Nevada no state income tax here.
The maximum log term capital gains rate is 20%
Thanks so much for the info.