That would depend on your tax bracket and how good of an accountant that you have. The capital gains is going to be figured on your sale price less the acquisition cost ( cost basis) less the costs of improvements made to the property.
Theoritically, you could zero out the tax gains if you keep your receipts etc. You might also want to consider buying a similar property ( I think you have 12-24 months to do so) in a 1031 exchange and you would have no taxes to pay.
If you are looking for a number, depending on your income bracket figure on at least 35% and could be as high as 50%.
2006-07-26 02:45:11
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answer #1
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answered by Sam B 4
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up to $250,000 (single) or $500,000 (married) profit is tax free. anything above those numbers is taxed. remember though, if you sold a house as an unmarried man, and the profits are $300,000, $50,000 will be taxed for capital gains. but, improvements made to the property are tax deductible. say you added a $25,000 swimming pool, a $10,000 kitchen upgrade, and $15,000 worth of landscaping, storage shed, sprinkler system, new roof, etc. Then your net gains would be $0, which means you still wouldn't have to pay capital gains taxes.
2006-07-26 09:55:27
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answer #2
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answered by thetoothfairyiscreepy 4
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I think the prior answerer was basing their answer on primary residence. The rules change for a second home.
2006-07-26 12:19:30
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answer #3
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answered by SuzHall73 2
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