2007-01-30 10:50:36 · 2 answers · asked by chuck m 1 in Business & Finance ➔ Taxes ➔ United States
Your mortgage, or lack thereof are not a factor for taxes. You may have to 'recapture' any depreciation claimed in previous years. I believe that is taxed at the same rate as ordinary income. If the home was your primary residence for 2 of the last 5 years, you may be eligible to exclude up to $250, 000 of gain from income. If you are not eligible, the difference between you 'basis' (cost) and the sale price is taxed as a capital gain. Long term capital gains are taxed at a lower rate than regular income, but the rate varies depending on your tax bracket.
2007-01-30 11:19:25 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
If you have owned it less than a year, it would be taxed at your ordinary tax rate. Long term gains (more than 1 year) are taxed at 15%.
2007-01-30 11:07:03 · answer #2 · answered by Wendy T 2 · 0⤊ 1⤋