I purchased my current home 5 years ago for 100K. I plan to sell it for 125K. I have added a pool, landscaping, new A/C and outdoor kitchen that cost me approximately 50K so my value increased due to money that I expended. Will I owe tax money on the 25K I made from the original purchase price?
2007-05-28 10:57:51 · 3 answers · asked by Kari 2 in Business & Finance ➔ Renting & Real Estate
If you have lived in the property at least two from the five years then you don't have to pay anything in taxes. Take a look at the link below.
http://taxes.about.com/od/taxplanning/qt/home_sale_tax.htm
2007-05-28 11:26:52 · answer #1 · answered by J 3 · 0⤊ 0⤋
You are talking about capital gains tax. Like the guy above said, you won't owe if you meet the criteria.
2007-05-28 17:17:18 · answer #2 · answered by Not Laughing w/ U 3 · 0⤊ 0⤋
No. You will not have to pay capital gains taxes. For one thing, you're going to have a capital loss if you have $150K invested and you're going to sell it for $125K.
2007-06-01 08:04:04 · answer #3 · answered by SCOTT M 7 · 0⤊ 0⤋