We live in SC and are moving to NC. Not been in our home 2 years yet. Profit around 15,000. How much capital gains will we have to pay, and what makes you exempt?
2007-03-03 22:37:51 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If you have an acceptable reason for selling your home, you can avoid paying taxes on the gain. Acceptable reasons include a change in employment, illness, death of family member, divorce, multiple births, and "unforeseen circumstances."
If you have such a reason, your tax-free gain is a pro-rated amount of the maximum excludible gain ($500K for married), based on the number of days you owned and lived in your home. With a gain of $15,000 you would have had to lived in and owned the home for less than one month in order to exclude the gain.
2007-03-04 01:02:34 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
If you moved because of a job change, health reasons or other unforseeable reasons, you can probably still take a reduced exclusion on your gain. It would be prorated for the time that you DID live there, but almost any amount of time living there would cover a gain of $15K.
If you're not eligible to exclude the gain, the capital gains tax rate would be either 5% or 15% depending on your marginal tax rate.
2007-03-04 09:27:28 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
Look at the link below. The relevant pages are 15-17. In any case, your gain will be taxed at a maximum of 15% (5% if you are in the 15% ordinary income band or lower).
2007-03-04 00:02:12 · answer #3 · answered by skip 6 · 0⤊ 0⤋