A real estate agent told me that I did not have to pay taxes after I owned a property for over two years. Now that I have sold the property I am ready to file taxes and I am afraid that I have to pay a fortune in taxes. I owened the property for 3 yars and it was the my main residence. Can anyone tell me if this real estate agent was wrong.
2006-12-23 05:59:07 · 3 answers · asked by majmz2 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Your other similar question is closed to new answers and your profile doesn't allow email, so I'm adding here to my answer on the other question.
As long as you didn't make over $250,000 profit on your house, then filing as single won't require you to pay taxes. $250K is the amount that's exempt from tax if you file single. And if you made over that....well, hey, congratulations.
2006-12-23 16:53:55 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
you need to reinvest your monies in new real estate or the profit will be considered a capital gains and YES a tax is required.
Remember to deduct any improvements on the property as and expense
2006-12-23 14:16:26 · answer #2 · answered by wiz 2 · 0⤊ 1⤋
Here's a site to check out. I believe this is what you are asking.
http://realtytimes.com/rtcpages/20040705_paythetax.htm
2006-12-23 14:13:02 · answer #3 · answered by Val 2 · 0⤊ 0⤋