I'm selling my primary residence I lived in for 6 yrs. And trying to find if I pay Capital Gains?

Question

I am making 15k from the sale, and I am not buying another home. Live in Raleigh, NC does that 15k get added to my income for the year and I pay regular taxes or do i pay a capital gain?

Answer 1

It doesn't get added to your income, and you don't have to pay capital gains tax on it. It's tax free -- enjoy :)
As long as you actually lived in the house for 2 of the past 4 years, it's exempt -- no tax, no capital gains. But...only a $15k gain in 6 years in Raleigh? Prices went up much more than that in that time...

Answer 2

Please, whatever you do, don't call the IRS and ask them - the people answering the phones have less training than someone working at at tax preperation service.

If you are married, you can have a gain of $500,000 before you are subject to capital gains tax. The figure is $250,000 for singles. Gain is the difference between the purchase price and the selling price (with adjustments for all sorts of things). There can also be a Loss on the sale of a home (different subject alltogether).

I have attached the IRS publication that explains this. It might also be helpful for you to take one of the Tax Classes available at local schools, or through some of the more reputable tax prep services - you could use that knowledge to save money for a long time!

More questions? Feel free to contact me.

Answer 3

As far as the federal tax, since you lived in it for at least two of the last five years, and owned it for that time, the first $250,000 of gain isn't taxable. You don't have to buy another home to qualify for the exemption - those were the old rules, no longer in effect.

I don't know if NC will tax the gain at all.

Answer 4

once you replace an portion of abode to apartment belongings, any benefit on the sale because of the apartment era is totally taxable. besides, any depreciation allowed or allowable in the course of the era that it changed into rented out is recaptured at sale time and is taxable at a larger fee than time-honored lengthy-time period capital efficient factors, at the moment as a lot as twenty-5%. with a view to proceed to exist an IRS audit on the sale if a partial exclusion on any benefit is being claimed you'll want a specialist appraisal of the fee of the belongings as of the date that it truly is switched over to apartment use. it really is even more advantageous important at present with the fluctuation in belongings values over the former few years. Any benefit (or loss) in fee going ahead as quickly because it truly is switched over to apartment is dealt with one after the other from any exclusion of benefit on the sale of a personal position of abode. also bear in mind that when it truly is not any longer been her crucial position of abode for 3 years and sometime, the exclusion of the benefit on the sale of a personal position of abode is misplaced completely. you nonetheless ought to account for the efficient factors one after the other (crucial position of abode vs apartment) considering if there's a loss in fee interior the belongings as quickly because it truly is switched over to apartment that loss may be used to offset the different taxable efficient factors. you nonetheless have the depreciation recapture to take care of as well and that is addressed as a separate merchandise on style 4797 at the same time as the belongings is offered. if you're not any further prevalent with the guidelines it truly is an outstanding idea to the contact a community tax specialist (a CPA or EA, no longer a seasonal section-timer at a tax prep mill) with small company and section 1250 depreciation recapture guidelines to ward off hassles with the IRS at sale time. between different issues, you decide on to ascertain that it truly is held as a apartment for a minimum of an finished year and sometime if in any respect available with a view to take great aspect with reference to the decreased tax expenditures on lengthy-time period capital efficient factors. you also opt to ascertain that the depreciation schedules are set up acceptable and that the depreciation deductions are extremely taken by making use of the taxpayer at the same time as it truly is held as a apartment.

Answer 5

I believe if you are married you get a $500,000 federal exclusion if you are filling jointly. $250,000 if you file singly. Call the IRS and they will tell you what to do.