If I don't put the profit from that sale into another property in the next year (and I continue to live in NY), will I be hit with a capital gains tax by NY state?
2007-07-01 14:18:33 · 5 answers · asked by Jamie G 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
What you do with the profits has no tax implications for the CG tax if any is due. That's the old rollover replacement rule which has been dead for about 10 years now. It was replaced with the current CG exclusion on a principal residence.
If you lived in the home as your principal residence for at least 2 of the 5 years immediately prior to the sale you can exclude all or part of the gain from taxation. The exclusion amount depends upon your filing status. It's $250k if your filing status is Single and $500k if it's Married Filing Jointly. Additionally you must not have claimed the exclusion within 2 years prior to the sale date.
NY and CA both extend the exclusion to state taxes, so if you qualify for the Federal exclusion you'll qualify for the state exclusion as well.
Any gain that exceeds the exclusion amount is taxable as a long term capital gain without regard to what you do with the gain.
2007-07-01 18:16:49 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
You have to pay capital gains tax,If you lived their a certain amount of time,say 2 or more years,then the capital gains tax is less than if you lived their 6 months.But you always have to pay,nobody gets away from it.
2007-07-01 14:39:33 · answer #2 · answered by doublewide420 2 · 0⤊ 2⤋
You're only subject to capital gains tax if you profited more than around $500,000 for a single person, or $1,000,000 for a married couple.
It must be your primary residence and you have to have owned it for two years or more to be exempt.
2007-07-01 14:25:19 · answer #3 · answered by Anonymous · 0⤊ 1⤋
i do no longer think of capital effective factors is going to be a situation for the reason which you reported you will placed it returned on the marketplace in sixteen-17 months and additionally you're attempting to make $20K in income. based the place the prop is placed, in case you pay $150K for it a $20K income it would could rejoice with 13% in decrease than 2 years and the marketplace isn't doing that. undergo in suggestions you in addition to might could pay a Realtor 6-7%. you in addition to might did no longer say how lots you have been going to place down, while you're going with ninety-a hundred% financing and with last costs you would be fortunate to brake even.
2017-01-23 08:00:10 · answer #4 · answered by frederic 3 · 0⤊ 0⤋
If you declare the home you sold as principal residence you don’t have to pay the tax on the capital gain. But you can only declare one home per year as principal residence. It a complicated calculation, you should talk to your accountant.
2007-07-01 14:29:08 · answer #5 · answered by Anonymous · 0⤊ 4⤋