my house and got profits of 48 grand..how much do i have to pay in taxes..or do i have to,..
2006-08-06 00:44:51 · 7 answers · asked by whistleblower 3 in Business & Finance ➔ Renting & Real Estate
and if i have to pay...how do i go about it..so i pay less...cos some one told me it might be around 5 grand thats gona go to taxes..
2006-08-06 00:45:35 · update #1
will some one answe..cos i really need to knw
2006-08-06 00:52:27 · update #2
i dont live there..havnt lived there for the last 3 years...plus i own other houses...thts why im wonderin if i have to pay taxs..cos i own other propertys
2006-08-06 06:14:48 · update #3
oh im from the uk...
2006-08-06 06:15:02 · update #4
You don't pay capital gain taxes on your primary residence if you have lived at the property for at least two years out of five years. It used to be a one time exemption but now there are no longer any limits on the number of times you can claim it as long as you meet the two year requirement and are under the caps of $500K for couples.
When you file your taxes there is a one page declaration page that you file along with it. That is the extent of it.
If it is investment property, then you can avoid or limit the capital gains by purchasing a similar property with the proceeds. It is called a 1031 exchange.
2006-08-06 03:48:55 · answer #1 · answered by Sam B 4 · 1⤊ 0⤋
You will need to pay capital gains tax at a rate of around 40% if the house is owned by you direct (that's almost £20,000) or if you have the house owned by a limited company that's owned by you then you may be able to write some of the gain off against expenses, and some as wages etc. prior to tax.
Talk to an independent accountant or similar for the best advice on this.
2006-08-06 20:58:52 · answer #2 · answered by nkellingley@btinternet.com 5 · 0⤊ 0⤋
if the house is in the USA, 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
so, you obviously meet #3 -- you should consult a tax advisor to ensure that your state does not have any particular tax requirements for real estate gains.
2006-08-06 02:00:08 · answer #3 · answered by tanmei 3 · 0⤊ 0⤋
Where do you live? How long did you live there, actually in that house?
Check with your tax person, but in the US you can exclude up to $250,000 ($500,000 if married) from tax provided you meet certain criteria (Lived in house 24 of past sixty months being the main one).
This change in the tax laws in 1996 was one of the initial factors behind the run-up in housing prices.
2006-08-06 03:56:54 · answer #4 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
If the house you're selling is your primary residence, then you don't pay capital gains tax. The only taxes you pay when selling are:
1. VAT on Estate agent fees.
2. VAT on solicitor charges (except for disbursements).
3. VAT on any other service related to moving.
2006-08-06 05:59:03 · answer #5 · answered by nemesis 5 · 0⤊ 0⤋
I wish I had the answer for you. You should seek the advice of a realtor or real estate attorney, they would probably be most informed.
2006-08-06 01:19:47 · answer #6 · answered by Anonymous · 0⤊ 0⤋
you dont pay tax when selling
you pay tax when buying, called stamp duty. ... but only if its over 125 000
2006-08-06 01:52:30 · answer #7 · answered by Anonymous · 0⤊ 0⤋