2006-12-08 08:45:08 · 4 answers · asked by Norman O 1 in Business & Finance ➔ Taxes ➔ United States
IRS does not take the taxes out you pay the taxes on..
Depends on several factors:
But if it is a primary residence which you have lived in for two of the past five years and of course own it during the time you lived in it? And you are single and made a profit of $250,000 and under than you pay no capital gains. Married filing joint it goes up to $500,000 and under.
If that is not the case it depends on how long you have held the home.. No matter what you have earned from the sale..
If you held the home for a year and one day? Long Term
anything less is Short Term.
Short Term capital gains in based on your current tax bracket that is what you would owe. What ever is your current tax bracket x Profit from sale
Long Term is based on your tax bracket:
If you are in the 10-15% tax bracket then your taxes would be 5% of the profit.
If you are higher than 10-15% then your taxes would be 15% of the profit.
Thanks Judy..
2006-12-08 09:09:20 · answer #1 · answered by T D 2 · 2⤊ 0⤋
How long have you owned the home?
> 2 years - Up to $500,000 in gains are tax free if married
1-2 years - 15% Unless you have a qualifying reason
<1 year - 25%+ Unless you have a qualifying reason
Plus state rates if applicable.
Call a professional and he or she can explain the rules.
2006-12-08 08:56:23 · answer #2 · answered by Wayne Z 7 · 2⤊ 1⤋
T D has it right. The only additional thing is that besides living in the home for at least two of the previous five years, you also have to have owned it for two out of the previous five years.
2006-12-08 14:34:30 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
36%. Good luck with that.
2006-12-08 08:52:06 · answer #4 · answered by Anonymous · 0⤊ 3⤋