Acquired property through gift,

When calculating capital gains on property, follow these steps:

1. Determine your basis: This is generally the purchase price plus any commissions or fees paid when acquiring the property.
2. Calculate the realized amount: Subtract your basis (what you paid) from the sale price (how much you sold the property for) to determine the difference.
3. Understand the holding period: Capital gains are taxed differently based on how long you held the asset. If you held the property for less than a year, it’s considered short-term; if more than a year, it’s long-term.
4. Review the tax rates: Long-term capital gains tax rates can range from 0% to 20% depending on your income and filing status¹. State and local taxes may also apply.

Remember that specific circumstances and exemptions can impact your capital gains tax liability.

Yes, LTCG tax liability arises.

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