Do you get taxed if you sell your home? If so, under what circumstances...
2007-09-02 21:16:28 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
If you sell your house at a profit, then the profit is taxable income on your income tax.
The same is true of anything else. If you sell your car, or refrigerator, or your underwear at a profit, then the profit is taxable income on your income tax.
There are some special rules for houses, though. Most people, upon selling a house, buy another one. In most cases, they will be able to "roll over" the profit on each house into the next house, until they finally sell their home at retirement age. At that point, they use a once-in-a-lifetime exclusion to avoid some or all the profit they've accumulated through the years.
The IRS has a nice booklet that explains all this - publication 523. You can telephone the IRS or use the second link below to get this booklet. It's free.
2007-09-02 22:05:26 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It's the person buying the house that takes over the taxes. There is usually a property tax and if you are in a city you could pay city and county taxes. It is usually figured into the loan and goes into an escrow account which pays these monthly along with your mortgage.
2007-09-03 06:54:14 · answer #2 · answered by starrynight1 7 · 0⤊ 0⤋
John, could be income tax consequences when you sell your home and make a profit. You would need to research "Tax Bases" or consult with a tax advisor.
2007-09-03 07:49:02 · answer #3 · answered by Alterfemego 7 · 0⤊ 0⤋