If there's enough equidy in my house (would have to double check those numbers) could I sell it and use the money to get an engineering degree? Would I lose most of it in tax's?
2007-12-06 06:50:30 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If you have owned it and lived in it as your principal residence for 2 of the 5 years immediately prior to the sale you can exclude up to $250,000 of gain from tax if you're Single or $500,000 if you're Married Filing Jointly. That should be enough for a degree from MIT with no taxes payable.
2007-12-06 06:54:51 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
You may not have to pay tax on the gain from the sale of your home. From a tax perspective, you may want to investigate other ways to pay for school.
If you took a loan, then you might be able to deduct the interest on that student loan as an adjustment to your income. Any tuition and fees you paid for with that loan may also qualify for credits or deductions.
And you would still have your house.
2007-12-06 16:31:22 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Under current Federal Tax Laws, a person filing as single, is allowed to exclude up to $250,000.00 in capital gain on the sale of their private residence, provided that they have lived in the home for at least two years out of the last five years, and the two years do not have to be consecutive.
A married couple is allowed to exclude $500,000.00 in capital gains provided that they have lived in the home for at least two years out of the last five. Again, the two years do not have to be consecutive.
2007-12-06 14:58:03 · answer #3 · answered by RUSerious 7 · 1⤊ 0⤋