the profit from your house when you buy a cheaper property.
EG.. say you made 20thousand, do you have to declare it, and to whom.....
2006-08-25 06:27:20 · 9 answers · asked by Anonymous in Home & Garden ➔ Other - Home & Garden
Yes you do. You are describing "capital gains". Up to a certain point, they may be exempt from taxes and you need to talk to a competent tax preparer or accountant.
Good luck with your taxes.
2006-08-29 06:04:48 · answer #1 · answered by exbuilder 7 · 9⤊ 0⤋
In the UK, as long as it is your principal residence (i.e. where you live most of the time - there are rules relating to this), you do not have to declare it, it is not liable to capital gains tax, or any other tax.
If it is a second residence, you wil have to pay capital gains tax on the profit that you make - simply this will be tax on the sale value, less the cost you originally paid.
Note, this is only the UK position. From other answers it is clear the USA position is different.
2006-08-25 06:33:12 · answer #2 · answered by Peakey 3 · 0⤊ 0⤋
Peakey is correct.
If you live in the UK and the home is your main residence then you do not have to declare any gains.
If it is not your main home IE your second home that you maybe rent then you will have to pay capital gains tax to the inland revenue. You do receive a capital gains allowance and I would suggest that you transfer half the asset to your spouse as that way you both receive the allowance and therefore have to pay less tax
2006-08-25 06:43:14 · answer #3 · answered by boo_boo_1971 2 · 0⤊ 0⤋
Yes, you do, it is considered a capital gain and will be taxed as income. It is declared on your IRS income tax form - if you use one of the cheap software programs to prepare your taxes, it will walk you through the declaration and how much you will have to pay.
You can deduct the expenses you had for selling the house, I.E. paint, lawn service, etc.
There are also instances when you do not have to declare the income, you can also do a search on www.irs.gov - particularly if you are older.
2006-08-25 06:34:34 · answer #4 · answered by Caroline H 5 · 0⤊ 0⤋
Not if your profit was only $20K.
If you profit was under $250,000 and you are single, or under $500,000 and you are married filing jointly, then it is not a taxable transaction as long as the house was currently being used solely as a personal principal residence and not for business or being rented.
2006-08-25 06:36:11 · answer #5 · answered by WendyD1999 5 · 0⤊ 0⤋
Yes, it's called capital gains, but the laws have changed. See: http://www.aga.org/Template.cfm?Section=Legislative_Reports&template=/ContentManagement/ContentDisplay.cfm&ContentID=19338
For a good understanding of capital gains, check out: http://en.wikipedia.org/wiki/Capital_gains
2006-08-25 06:34:35 · answer #6 · answered by Zebra4 5 · 0⤊ 0⤋
I think as profit on your income tax, although I am not positive.
2006-08-25 06:30:59 · answer #7 · answered by ? 7 · 0⤊ 0⤋
most likely, it will be another way for the govenment to tax you
2006-08-25 06:29:55 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Yes but don't tell anybody
2006-08-28 12:47:11 · answer #9 · answered by Anonymous · 0⤊ 0⤋