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Tax on Sale of cabin
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9/14/2019 at 1:41:19 PM GMT
Posts: 3
Tax on Sale of cabin
We have sold our cabin and I was wondering how the IRS treats the sale of the cabin since we don't own the land.  Is it treated as personal property?


Last edited Saturday, September 14, 2019
9/14/2019 at 3:33:38 PM GMT
Posts: 91
You are correct, a cabin is classified as personal property, not real property because the cabin owner does not own the land. However, my understanding is if the cabin sells for a gain (sale proceeds exceed cost of purchase + cost of any improvements), your gain (profit) is considered a taxable capital gain by the IRS. Capital gain rules generally apply to all held assets including both real and personal property.  Also, capital gain exclusions that may apply to the sale of a primary residence would not apply to the sale of a cabin since the cabin cannot be used as a primary residence per our permit terms. Please consult with a tax professional to confirm.


Last edited Sunday, September 15, 2019
9/15/2019 at 3:05:07 PM GMT
Posts: 3
Thanks so much. This is very helpful


Last edited Sunday, September 15, 2019