gain and what is the percent of the penalty ?
2007-09-19 11:26:17 · 8 answers · asked by ronianne3 1 in Business & Finance ➔ Renting & Real Estate
If it was your primary residence you could exclude if held for 24 months but ,
Less than 24 months , you Do Pay capital gains tax .
The amount depends on your total income when you file .
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2007-09-19 11:31:13 · answer #1 · answered by kate 7 · 1⤊ 0⤋
Your first problem is unless you have done major updating, you will never get an appraisal for the sales price. You are talking about a 40% per year appreciation rate and 20% in 6 months. The appraiser must explain the increase in sales price in 6 months. I don't know of any market that is going on. Yes you will have to pay short term capital gains. Good luck.
2007-09-19 11:55:13 · answer #2 · answered by Leo F 4 · 0⤊ 0⤋
Yes, that would be capital gains...if you make a profit from the sale of the home less than 1 year after you buy it that is capital gains.
The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income and are called the maximum capital gains rates. For 2006, the maximum capital gains rates are 5%, 15%, 25% or 28%.
2007-09-19 11:32:25 · answer #3 · answered by Anonymous · 1⤊ 1⤋
It depends. If it was an investment opportunity then you may roll over your gain into a new investment property. It is called a 1031 exchange.
If it is not a 1031 exchange, I believe that you have to have been living there for 5 years to get the $250,000 exemption (or $500,000 if married) so that you don't have to pay taxes.
You will have to pay tax on it.
2007-09-19 11:37:07 · answer #4 · answered by Anonymous · 0⤊ 0⤋
In Canada, there are no capital gain taxes on the home where you resided. If it was a rental home and you are flipping it, there would be taxes
2007-09-19 11:54:54 · answer #5 · answered by Anonymous · 0⤊ 0⤋
the 1st factor you should do is locate out if the lender will enable the loan to be transferred on your chum. The economic company won't enable him to anticipate the loan. if that's the case then you definitely can not pass the abode to him. that's that if he can not safeguard a private loan from yet another economic company. If he has good credit and a tender earnings the economic company may be waiting to allow him anticipate the loan, yet that's the 1st factor you should locate out. suitable of success.
2016-11-05 21:40:18 · answer #6 · answered by homrich 4 · 0⤊ 0⤋
It would be a gain to report on your tax return. If you reinvest the money in another home to live in, then you pay no tax. This is assuming these homes are your residence.
2007-09-19 11:36:13 · answer #7 · answered by morris 5 · 0⤊ 1⤋
RUTS of RUCK! Are you in an area that has gained in value? Where is it? What I suggest is you read the tax laws before buying... Do you homework, we're just mear Yahoo's !
2007-09-19 12:07:30 · answer #8 · answered by Anonymous · 0⤊ 0⤋