Is the new owner subject to any tax penalties if he/she sells the property bought at a tax sale?
Once you receive title to a property purchased at a tax sale, it is subject to the same tax rules as any other property you might own. If it is used as your principal residence and is sold, it is not subject to a capital gains tax. If it is not your principal residence and you don’t qualify for an exemption, then you will pay a capital gains tax on resale.
Related Questions
- If I buy property from a Tax Foreclosure/Constable Sale will I have to worry about a previous owner regaining ownership?
- Is the new owner subject to any tax penalties if he/she sells the property bought at a tax sale?
- How Much Money does the Owner have to Pay to Redeem the Property Sold At a Tax Sale?
