I have lived there for 1 year and 9 months...Please let me know the percentage if less than two years living there...
2007-03-26 05:35:32 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The old rollover replacement rule was discarded about 10 years ago. Since you lived in the home for less than 2 years the entire gain is fully taxable whether you purchase another home or not. Since you owned it for more than 1 year the gain will be taxed at the lower long-term capital gains rate, normally 15%.
If you haven't sold yet, hold off another 3 months and you can exclude $250,000 in gain from tax if your filing status is Single and $500,000 if your filing status is Married Filing Jointly.
2007-03-26 05:42:11 · answer #1 · answered by Bostonian In MO 7 · 3⤊ 0⤋
You get taxed on the PROFIT of the house, not the overall sales price, and its basically reported as income on your tax return next year...it can be hefty (10-20%!) so waiting 3 months could make a huge difference.
I would wait about 45 days to put it on the market and then when someone makes an offer, just make sure that the closing date is atleast 1 day after the 2 year mark.
2007-03-26 06:09:51 · answer #2 · answered by Anonymous · 0⤊ 0⤋
First of all, it's only the capital gain that you get taxed.
The following website has a really cool capital gains calculator.
http://www.moneychimp.com/features/capgain.htm
2007-03-26 05:41:50 · answer #3 · answered by mark 7 · 0⤊ 0⤋