Today I went onto H and R blocks website and saw they had a free tax estimator - so that you wouldnt be surprised when you went to get your taxes done when you found out how much youre getting back or how much you owed! I typed my info in (not sure if i did it right though) and it said i owed almost $35000!!!! I am freaking out. The thing thats making it go up is this: Last year I sold my house, that i only lived in for 1 year and 1 month. The guy that bought it took out a loan for $107000 but i sold my house for $98800, which means he got extra money in his loan for his personal use. I made $6500 profit on my house. I got a 1099 form from the closing lawyers office stating i sold the house for $107000 which i did not because i sold the house for $98800. when i put 107000 in on the HR block website it said i owed $35000!!!!!! Is this correct? please help!
2007-02-08 05:42:45 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You should have got a statement of some kind which stated how much you still owed on the house and how much you sold it for which should have equalled the check you recieved at closing. Worse case is you will owe taxes on that difference the $35,000 would be correct if you made a profit of 107,000. Which you did not. You can also deduct closing cost, etc.
Better go to a real accountant. I don't like them but if you sold a house your tax prep will be too complicated to simply do it online.
2007-02-08 05:56:04 · answer #1 · answered by Roadkill 6 · 0⤊ 0⤋
i did my taxes after selling my home for a profit and did it online w/Turbotax - they step -by-step you through it and it's not that difficult! but if you're unfamiliar or don't trust your judgement go to a reputable cpa firm... if you do owe taxes you can be put on an installment program to pay it back and if you get money back next year the gov will take that check until your debt is paid....either way you do not have to shell out all that money if you don't have it.
2007-02-08 06:01:41 · answer #2 · answered by thenakats 4 · 0⤊ 0⤋
You need to figure only your profit you made on the house sale. If you made any improvements you can take this off of the profit also. Then taxes are paid only on the profit made. This is called capital gain.
2007-02-08 06:03:17 · answer #3 · answered by magpie 2 · 0⤊ 0⤋
I think you mistyped something and added an extra digit somewhere.
2007-02-08 05:54:06 · answer #4 · answered by Lisa A 7 · 0⤊ 0⤋
Wow!
2007-02-08 06:35:51 · answer #5 · answered by Simple1 6 · 0⤊ 0⤋