How much will we have to pay for capital gains tax in GA if we sell after owning the home for 27 months?

Question

My husband and I have owned our current (Georgia) home for about 27 months (as of Oct 07). If we sell this home and don't want to buy another immediately, how much would we have to pay to capital gains tax (federally and/or to the state)? How long would we have to buy another home before we would have to pay this tax amount? Any other info that might be helpful? Thanks in advance for any advice!

Answer 1

This is for federal taxes:
You can exclude up to $250,000 of the gain on the sale of your main home if all of the following are true.
* You meet the ownership test.
* You meet the use test.
* During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home.

Ownership and Use Tests
To claim the exclusion, you must meet the ownership and use tests. This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test).

If you can exclude the profit, then you don't need to report the sale. Also if your spouse also meets the requirement you can exclude up to $500,000.

Answer 2

Go to IRS.GOV and forms; get Pub 17 or simply read the pertinent part online. If you lived in your main home over two years and are married, filing jointly, you can sell your main home and make $ 500,000.00 in gain and have absolutely no tax liability. You don't have to immediately buy another home or anything; it is yours to keep. Yours, yours, yours; all yours. It is not capital gain or anything, it is YOURS. Move and leave no forwarding address or all your relatives will be trying to borrow from you or get you to invest in something. Put your money only into tax exempt state bonds so there will be no federal income tax on the interest earned, or state tax either.

Answer 3

For federal, probably nothing since you owned it over 2 years, if you lived in it as your main home over two years. You can exclude up to $500,000 of gain - if your gain was under that, you don't even have to report it.

Buying another home in a certain period of time no longer has any effect on taxes - that was an old rule that's been gone for many years.

I don't know about Georgia.

Answer 4

"knowitall" is easily amazing for as quickly as. you ought to stay in it for 2 of the 5 years earlier than merchandising to ward off capital helpful properties tax on the sale. for the reason which you have lived in it for extra desirable than a million three hundred and sixty 5 days, the present fee is 15% or much less, based upon the whole earnings. Stick it out for 6 extra months, and this is 0% on the 1st $250k of income. The previous reinvestment rule died over a decade in the past and became into replaced with the present $250k ($500k if married submitting mutually) exclusion.