2007-02-22 02:43:03 · 6 answers · asked by jamiesoulski 1 in Business & Finance ➔ Renting & Real Estate
Are you playing Monopoly?
2007-02-22 02:47:22 · answer #1 · answered by Anonymous · 0⤊ 0⤋
First of all confirm this with your accountant.
Gain on the sale of primary residence is not is not taxed up to 250k on the pro-rated basis. Example: if you lived in the place for 1 year, you are entitled to 50k of gain.
Furthermore the exclusion scales up to 500k for a family. Which mean if you are married you get up to 100k of tax free gain.
Finally if you have been deducting some part of your home as an office, you will have to pay the taxes on the depreciation that you have deducted.
2007-02-22 11:36:58 · answer #2 · answered by Likvornik 1 · 0⤊ 0⤋
If you are selling your main residence to buy another main residence then there is no Capital Gains Tax. If you sell a second home or one that you have been letting then you will pay CGTax.
2007-02-22 10:51:19 · answer #3 · answered by ANF 7 · 0⤊ 0⤋
As long as you lived in your home for two years out of the last five you will not pay capital gains, unless your gain is over 250,000. You will likely get more of a deduction. especially if you earn points on your mortgage. there should be no negative effect, unless you are moving out of a city in which you work in. then, you may have to pay additional local taxes depending on the state.
2007-02-22 11:07:02 · answer #4 · answered by dave 2 · 0⤊ 0⤋
more then likely you will have to pay capital gains taxes plus depending on the state may have to pay some additional taxes at closing dock stamps and fees so forth
2007-02-22 10:50:41 · answer #5 · answered by redbutterfly38 1 · 0⤊ 0⤋
I just heard of a new law where if you invest in the same type of property you sold, you do not get taxed....sort of a transfer. I don't know details. Good luck.
2007-02-22 10:48:22 · answer #6 · answered by maimatt7 3 · 0⤊ 0⤋