2006-07-10 04:55:22 · 4 answers · asked by mulderlx 2 in Business & Finance ➔ Investing
According to BankRate.com they claim that you can make up to $250,000 in profit if single $500k if married and not pay capital gains taxes.
But here are two other points if you either don't meet the above qualifications or you think BankRate.com is not accurate.
Two Major Ways To Not Pay
1. If you did renovations and have the receipts you can deduct the expenses of those changes. So if you spent $20k on improvements to sell it for $20k more than you bought it for you won't have taxes.
In addition to one...
2. You can use the old trick and use the money from the sale to purchase a house at the cost of the one you sold.
Check out the source for a pretty good article that I think answers your question in more detail.
2006-07-10 05:05:32 · answer #1 · answered by TransportExpert 4 · 0⤊ 0⤋
If its a principal residence, there is a $500K exemption below which you don't have to pay tax on the capital gains. If it is a vacation condo and not a principal residence, or if the gain exceeds $500K, consult a CPA. Believe me, the few hundred dollars this might cost you will be money well spent to seek out possible alternatives.
2006-07-10 12:00:16 · answer #2 · answered by lmnop 6 · 0⤊ 0⤋
Billy is right. No capital gains = no capital gains tax.
Talk to an accountant with experience in this area. There might be other answers.
2006-07-10 13:34:11 · answer #3 · answered by insuranceguytx 5 · 0⤊ 0⤋
Sell it for pretty much what you paid for it.
2006-07-10 11:59:33 · answer #4 · answered by Anonymous · 0⤊ 0⤋