2007-01-10 11:00:10 · 8 answers · asked by jorge a 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Under current tax law profit from the sale of a personal residence is not taxable unless the gain is over $250,000 or $500,000 for a joint return. As long as the house is your primary residence for 2 of the 5 yrs prior to the sale, the gain is tax free.
2007-01-10 13:34:02 · answer #1 · answered by irongrama 6 · 0⤊ 0⤋
Yes, you have to pay the profit you make. If you put money into the house to improve that you can add that to the purchase price and that increases the base. So sit down and figure it out, and hopefully you kept receipts on this sort of thing. However, if you lived in the house you don't have to pay the capital gain taxes if you had owned the house for over two years.
2007-01-11 01:00:51 · answer #2 · answered by Carlene W 5 · 0⤊ 0⤋
you can exclude up to $250,000 of the gain on the sale of the house.
if 1. you own the house for at least 2 of the last 5 years.
2. its ur primary residents for at least 2 of the last 5 years.
you can exclude up to $500,000 of the gain on the sale of the house.
if
1.you OR your spouse owned the house for at least 2 of the last 5 years
2. you AND your spouse lived in the house as a primary residents for at least 2 of the last 5 years.
for some reason you don't meet the 2 year requirement do to special reasons you can pro rate it.
and you can only use this every 2 years.
2007-01-12 14:40:40 · answer #3 · answered by clu25 2 · 0⤊ 0⤋
Depends on whether you lived in it or not for the last 2 out of 5 years.
If you didn't, then it's all taxable.
If you did, then if you are married, exclude the first $500K of profits. If you are not, exclude the first $250K from profits. Do not deduct if a loss.
2007-01-14 11:17:28 · answer #4 · answered by WealthBuilder 4 · 0⤊ 0⤋
If you owned the house for two years out of the five immediately prior to the sale, and lived in it as your main home for two of those same five years, then you can probably exclude up to $250,000 of the gain, $500,000 if married filing jointly, from your federal return.
State rules can vary.
2007-01-10 22:06:17 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
How long did you live in it and own it?
If it was over 2 years, chances are any gain will be tax free.
2007-01-10 20:22:39 · answer #6 · answered by Wayne Z 7 · 0⤊ 0⤋
I don't know if this applies to all states, but in my state... you only need to report it as income earned if it is over $50,000.00
Contact a local tax preparer for more information on your state's regulations.
2007-01-10 20:06:38 · answer #7 · answered by Estrella 2 · 0⤊ 1⤋
different countries. different rules.
2007-01-13 01:27:10 · answer #8 · answered by hurt 3 · 0⤊ 0⤋