California Real Estate
I have owned 50% of a building (mixed residential & retail) for 8 years.
I was gifted the second half (other 50%) on May 4, 2011.
The building is split into 3 separate units. Downstairs (retail), majority upstairs (my residence), small upstairs (a rental apartment).
Depending on how this year goes, I should be in the 15% tax bracket. There is a small chance I may end up in the 25% bracket (married, filing jointly)
If I were to sell the building BEFORE May 5, 2012, what would my Gains Liability be? Is it 1/2 short 1/2 long (given I've owned half the building for several years, half less than a year)?
Would I still qualify for part of a break for the part that I've lived in the last several years?
Am I better off just waiting to close until after May 5, 2012?
I'm worried about gains tax going up in 2013, and wanting to sell BEFORE then.