Taxes Paid from Sale of Property?

Question

I recently sold a condo in Nevada for a $50K profit, and moved to California. I owned it for 3 years. Can anyone please tell me how much in taxes I am going to have to pay at the end of the year and why?

Answer 1

in the US market, you do not have to pay federal gains tax on real estate earnings if you meet the following requirements:

1. it was your primary residence
2. you lived in the property at least 2 out of the past five years
3. your gain was no more than $250k single, $500k couple

sounds like you meet all 3 requirements -- you should consult a tax advisor to ensure that your state does not have any particular tax requirements for real estate gains.

good luck.

Answer 2

your part of the the taxes should've been paid in the sale of the property. Look over your paperwork to verify this. All of it should've been taken care of in the closing. If you don't understand the paperwork, have a lawyer assist you.

For example, I bought my house in March. The previous owner had to pre-pay his part of the taxes at the closing (Jan-Mar). At the end of the year, I'm going to have to pay all of the taxes, because I was credited his part in the contract of sale. In other words, his part of the taxes was subtracted from the total price of the house, so now it's entirely my responsibility. The same should've happened to you. The taxes should be the responsibility of the new owner, not you.

Answer 3

You don't pay capital gains on sale of personal residence as tammai suggest. Depending on why you moved, you could probably also deduct your moving expenses as well. I hope you kept your receipts.