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(This information is not legal advice and is not intended to be taken as legal advice. This article is intended to provide only general, non-specific information. This article is not intended to cover all the issues related to the topic discussed. If you have any legal questions, you should consult with an attorney or CPA familiar with the issues and the laws addressed.)
I'm selling my timeshare- what taxes am I going to have to pay at closing?
This is one of the most common questions I'm asked by Sellers, and is one of the most difficult to answer... My first recommendation is always the same- always speak with your accountant or tax attorney!
Both state and federal taxes can affect you during your transaction. As a rule of thumb, a Seller can generally expect to have some type of non-residency tax withheld from your proceeds at closing if the deeded property you are selling is located in a state or country with an annual income tax (and you don't reside in that state or country).. Examples of these are FIRPTA (USA), HARPTA (Hawaii), CALRPTA (California), MNITR (Maryland), and there are many others.. For the most part, these range from 3% to 10%. For a non-US seller, it is also common for you to be subject to both state and federal withholding. In some states, if this withholding is not submitted- the government has the right to pursue the new owner for the unpaid tax.
As a Seller, always consider that if your transaction results in a gain it will be taxable, but that your losses are generally not deductible.
I'm selling my timeshare- what taxes am I going to have to pay at closing?
This is one of the most common questions I'm asked by Sellers, and is one of the most difficult to answer... My first recommendation is always the same- always speak with your accountant or tax attorney!
Both state and federal taxes can affect you during your transaction. As a rule of thumb, a Seller can generally expect to have some type of non-residency tax withheld from your proceeds at closing if the deeded property you are selling is located in a state or country with an annual income tax (and you don't reside in that state or country).. Examples of these are FIRPTA (USA), HARPTA (Hawaii), CALRPTA (California), MNITR (Maryland), and there are many others.. For the most part, these range from 3% to 10%. For a non-US seller, it is also common for you to be subject to both state and federal withholding. In some states, if this withholding is not submitted- the government has the right to pursue the new owner for the unpaid tax.
As a Seller, always consider that if your transaction results in a gain it will be taxable, but that your losses are generally not deductible.
yeah, right, somebody give this guy a banning
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