I live in Glendale, AZ and will be selling my house that I bought only year ago. Are there any state or federal taxes to be paid once i sell my house because I will be making profit on the home ?
thanks
2006-06-19 10:22:16 · 4 answers · asked by MasterFuu 2 in Business & Finance ➔ Renting & Real Estate
DETAILS: I bought the house for $165K and now the estimated value is $255K in less then one year of having the home. Thats some real profit and how much would i need to pay to the state? any guess?
2006-06-19 10:45:00 · update #1
If you sell your home in less than two years from date of purchase, you pay a 15% short term capitol gain.
From your gross profit, you can deduct all costs related to the sale.
I am with Realty Executives in Phoenix. If you want to contact me I will show you how yo maximize your profits and reduce your tax bill.
2006-06-19 10:56:33 · answer #1 · answered by Nick R 3 · 3⤊ 0⤋
Assuming AZ has a income tax you will owe federal and state taxes. If you can wait on selling the house for at least two years you can utilize the homesale exclusion and exclude up to 250,000 in gain if you are single and 500,000 if you are married. Secondly remember gain = selling price - improvements - orginal cost - minus closing costs if you have no gain you will owe no tax.
2006-06-19 17:37:57 · answer #2 · answered by coolew01 2 · 0⤊ 0⤋
Yep, you will pay a capital gains tax of 15% - You should wait 12 months and claim the exemption. 15% of $90K profit is $13,500 - that's a big check to write the IRS
2006-06-19 23:21:34 · answer #3 · answered by Paula M 5 · 0⤊ 0⤋
I DON'T KNOW ABOUT ARIZONA BUT HERE IN N. J. YOU HAVE 18 MONTHS AND IF YOU BUY ANOTHER HOUSE OR CONDO THEIR ARE NO TAXES ON THE PROFIT
2006-06-19 17:27:50 · answer #4 · answered by ? 5 · 0⤊ 0⤋