What are the percentage rates in PA? And how much should I set aside of whatever I take home at closing?
2007-07-14 17:35:41 · 3 answers · asked by Jason 1 in Business & Finance ➔ Taxes ➔ United States
PA will exclude the gain on the sale of your home if it was your principal residence and you lived in it for two of the past five years, and did not use the home for business purposes.
If this does not apply, you may owe income tax (approximately 3%) on the gain. If you provided owner financing, taxes will be due on the interest income.
2007-07-14 22:47:47 · answer #1 · answered by ninasgramma 7 · 2⤊ 0⤋
IF it was your primary home AND you lived there for at least 2 years, It is TAX FREE as far as IRS is concerned.
Don't know about State of PA..
If it was a rental and not your home, it's a different story.
2007-07-15 00:44:38 · answer #2 · answered by CommonCents 4 · 0⤊ 0⤋
Can't say. Need more details. Was it your home? How long did you live in it? When did you live in it? When did you buy it? When did you sell it? Did you ever rent it out? If so, how long for and what did you pay for it? Without the answers to those questions (among others) there's no way to say.
2007-07-15 02:37:14 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋