Figures we'll use are home purchased at $215,000, sold at $275,000 with $30,000 in upgrades and realtor expenses/closing costs (net of $30,000 it appears) within a 15 percent tax income bracket. I'm an idiot on this subject and appreciate your help. I understand the more than 2 year ownership rule but have to sell at 15 months without any of the 3 allowable tax breaks (medical, employment, etc.).
2007-10-29 10:03:06 · 3 answers · asked by Too Old For Idol 4 in Business & Finance ➔ Taxes ➔ United States
I meant capital gains. Said I was an idiot on this subject.
2007-10-29 10:25:13 · update #1
Do you mean CAPITAL gains tax? If you don't qualify for any of the exceptions, tax will be 15% on your $30K gain, or $4500.
Congrats on getting out with your skin intact, and even making money on the house - many wannabe sellers right now would love to be in your shoes.
2007-10-29 10:16:27 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
Actually, if your marginal bracket is 15%, the CG tax on the gain on the sale will be 5%.
2007-10-29 17:21:32 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
15% of $30,000 = $4,500
2007-10-29 17:08:52 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋