I bought a house about year and 6 months ago and i'm thinking about selling it and buy another house in another state. I heard that if you sell your house before 2 years, you have to pay lot of taxes. My question is if you buy another house right after you sell it, do you still have to pay lot of taxes? and how much is lot??? Would it be best to hold the house for 2 years and then sell it??
2007-01-04 06:49:07 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
If this is your primary residence, you must hold the home for 2 years to qualify for the $250K gain exclusion. The amount you will pay in taxes will be based on your actual gain. There is also a provision that will allow you to pro-rate the excluded gain in your case 3/4 of the 2 year requirement if certain conditions are met. A job change is one of those provisions. Again, the home must be your primary residence. Purchasing a new home will make no difference on the gain you will need to report on the sale. If you would like professional assistance, please feel free to contact me via http://www.slarson.com/contact or steve@slarson.com
2007-01-04 12:20:12 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you lived in a house for 2 of the last 5 years then you are exempt from Capital Gains Tax up to $250,000 double if married.
2007-01-04 07:07:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Nobody really answered your question, did they? The answer is "Yes", you still have to pay the Capital Gains taxes even if you buy another house. And "Yes" it would definitely be better to wait until the 2 years are up. No brainer.
2007-01-04 07:37:11 · answer #3 · answered by hatchland 3 · 0⤊ 0⤋
schedule the closing right on the 2 year mark to avaoid taxes. If you list your house in Feb. or March, then you have 3 to 4 months. Look up your buy date. I think the two years is pro rated if you are under.
2007-01-04 06:58:43 · answer #4 · answered by zocko 5 · 0⤊ 0⤋
no you'll merely lose money procuring actual sources is now not a strong funding sources values received't go back to the better fee for 20-30 years each of the money you pay in taxes and achievable association dues is lost money. and also you've were given each of the legal and economic duty for it. beside have a good number of money tied to a house isn't strong why be abode wealthy, money undesirable. abode possession is powerful for the banks and authorities sales
2016-12-01 20:02:18 · answer #5 · answered by papen 4 · 0⤊ 0⤋