2006-12-07 14:14:49 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
$250,000 for a single person, $500,000 for a married couple. You must have lived in the house for 2 of the previous 5 years to get the tax free status.
2006-12-07 14:19:48 · answer #1 · answered by strawberrycrush 4 · 1⤊ 0⤋
strawberrycrush has the best answer with the qualification that the house must have been your principal residence for 2 of the preceeding 5 years. See the IRS website for a definition of principal residence.
Also note we are talking about the gain (that is excludible from income tax calculations) on the sale here not the gross sales price. Generally, the gain is the gross price less the cost of the house sold and the expenses of selling the house (e.g., commissions).
2006-12-07 14:56:43 · answer #2 · answered by Dirk M 2 · 0⤊ 0⤋
For federal, if you have owned the house for two out of the five years immediately before the sale, and lived in it for two out of the last five years, then $250,000 of the gain is tax-free for a single person, $500,000 if married filing jointly.
States might have different rules for state taxes.
2006-12-07 14:23:16 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Nothing!! You must pay capital gains tax on any proceeds. You must find a way to divert that money, such as IRA or rental property, etc..
2006-12-07 18:07:00 · answer #4 · answered by Scott W 3 · 0⤊ 0⤋
If you are talking about the capital gain tax. That is the only tax I can see applying to you. You have certain life time exemption.
It also depends your state's tax code.
You should consult it with your accountant.
2006-12-07 14:21:47 · answer #5 · answered by kunjaldp 4 · 0⤊ 1⤋