Having to sell my house?

Question

my marriage is breaking down and i feel that for the sake of our 4 children i have to leave. The only way we can afford it is to sell the house. and split any money after everything is paid for. I can't afford to buy another house so i will have to rent, what i want to know is if i'm not buying will i have to pay Capital Gains tax on whats left,

Answer 1

No capital gains tax, everything is yours on what is left unless you inherited the house someone.

Answer 2

No capital gains tax is due when you sell your home. Other properties and capital items that increase in vlaue may be subject to Capital gains tax, but not your own home.
By the way if you want to sell the house quickly and you or the wife wants to live in it and pay rent look at some 'Sell and rent back' companies, such as http://www.sell2stay.com
Sell 2 Stay specialises in sale and rent back schemes for owners of homes in South Wales and Southern England who suffer a change in circumstances or financial difficulties and need to sell their property quickly. With Sell 2 Stay, property sellers can opt to rent back their home and after three years they receive a rebate of 50% of the rent paid and have an opportunity to buy back their house, using the rental rebate as a deposit for a new mortgage.

Best of luck Bigpathome.

Answer 3

Capital gains are only paid on 'profit'. If you sell a house for $200,000 and paid $100,000 for it, the difference is what capital gains would be based on.

If you are in the US, there are rules designed to protect some of your money. It used to be the capital gains had to be re-invested in real estate quickly or you owed taxes on it. Now for homes if you have lived in it for 2 of the last 5 years there is a capital gains exemption of $250,000 for singles and $500,000 for married couples. This deduction is in trouble though -- they are proposing cutting it back to bail out all of the people in foreclosure trouble!!

The capital gains tax rules have also changed and if your capital gain is over a year old (you bought the asset you sold more than a year ago) then the rate is 15%. Much less than the used to be.

Answer 4

That is best answered by your tax person! but, as a guess if you don't work it into the divorce papers that he pays capital gains , where he will probably want all of them. You will probably have to pay half of them. If you do re-invest the money immediately (6months) I believe that you may be OK. Think hard about the divorce if you can't afford the kids on your own. THey aren't so likely to pay up after a divorce. Most guys don't see life the way we do! Good luck. Maybe going back to school is a good idea until you can take them on your own? Get that degree while you can? See?

Answer 5

As far as I know, the answer is no, because you are not 'gaining' in the strict sense - you are liquidising current assets - changing what is yours from one state to another - therefore the total worth of what you have is still the same - you go from a house being worth £100,000, to having a £100k in the bank. You would only pay Capital Gains if someone had given you the money - and you had made a gain, or increased your wealth through acquisition.

Answer 6

Marital House is not subject to capital gain tax. If I were you, I rent a place, apply for a divorce petition, you can this yourself, and when you got divorced in law, apply for mortgage to buy your house. This way, she will not be able to claim against your assets.

Answer 7

I am sorry for your situation. This website will give you your answer regarding capital gains taxes on your home. Which by the way is no if it is less than $250,000 for a single person, double that if married.
www.bankrate.com/brm/news/real-estate/20041018a1.asp
Good Luck and take care of yourself and your kids.

Answer 8

apply for council house it is cheaper