If you own a house and sell it do you have to pay taxes on the money you get for your house?

Question

Like if you buy a house straight up cash and fix it up some and sell it.do u have to pay taxes on the money you make? and if so, how much?

Answer 1

You can avoid capitals gains taxes in a few ways if you live in the US...
-if the house you sold was your primary residence for 2+ years
-You roll over your profits into a new property
-You use the once in a lifetime waiver...tou can only do this once so make it count

Remember that tax is only on the profit...not the whole value of the house. Make sure you keep careful records of what you spend on renovation as that can be deducted from your profit amount.

Answer 2

If you don't claim it as your personal primary residence for at least 2 of the previous 5 years before selling it, then you have a total tax exposure of 15% to the Feds and what ever your State charges for capital gains. That is why it is so important for you to keep maticulous records. The cost of purchase, there always is some, the cost of the sale, the cost of the materials and labor, all count when you are looking for deductions against profit. Do like most in your field - pick up all the cash receipts you find lying on the ground at Home Depot!

Answer 3

If you flip it like you describe then you have to pay some capital gains tax. Now if you live in it for 5 years then when you sell it you get to keep the first 250K tax free I believe. You used to be able to do this only once in your life but now it is every time you sell a house that you live in.

Answer 4

It's called capital gains taxes and the amount depends on your tax bracket. There are some repairs that are tax deductible. The IRS publishes this type of information and may be notified at IRS.gov

Answer 5

depends on what the law is where you are ... In Oz it's called Capital gain and yes you have to pay tax on the difference between what you paid and what you sold it for (if it was your residence ... no tax) ... and it all depends on your income and if you lived in the house or bought it as an investment .... if you're a high flyer you could be up for as much as 48.5% as tax

Answer 6

if this is a house you live in then no..you just sold your own home..
if you flip it.. then you pay the taxes on the profit over what you paid ..but you get your expenses and all of them, time, fees, insurance,,,all of them..
you could end up losing money.

Answer 7

Yes unless you "roll it over" into new property, that's what most people do that buy and sell houses

Answer 8

Not on the first house, but you will on any houses thereafter.

Capital gains tax

Answer 9

If you buy it for 100K and sell it for 150K. 50k is capital gain that is taxed, unless you trade up for a 150K home so there's no capital gain.

Answer 10

no