yourtabo
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More info is need. For example, to determine your gain for selling your house, I need to know your basis in the house. How long you own the house and how long have you lived in the house. Without these info, no way to determine taxable gain. |
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bostonianinmo
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What you owe on it has no bearing on your tax liability.
First you need to figure your cost basis. That's what you paid for the home plus any improvements or major repairs. Now subtract that from the net proceeds from the sale -- that's the sales price minus any selling costs such as Realtor commissions and certain closing costs. The result is your gain.
Now, if you owned and lived in the home for at least 2 of the 5 years prior to the sale you may exclude up to $250k of gain from tax if Single or $500k of gain from tax if Married Filing Jointly as long as you have not used the exclusion within 1 year of the sale date.
If you don't qualify for the exclusion then the entire gain is generally taxable. The tax rate depends upon how long you owned the home. If it was for one year or less, the entire gain is taxed as ordinary income. If you owned it for more than one year, the gain is taxed at the lower Long Term Capital Gain rate. That rate is normally 15%, however if your marginal rate is 15% or less (inclusive of the gain) then the rate drops to 5%. However for tax years 2008 and 2009 the 5% rate drops to 0%.
Contrary to what another poster claims, what you do with the proceeds has no impact on your taxes. That old reinvestment rule was dumped over a decade ago. |
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ninasgramma
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The amount you owe on the house does not determine what you pay.
Your gain on the house is your selling price minus your "basis" in the house. Your basis in the house is usually your purchase price plus any improvements.
Your gain up to $250,000 ($500,000 if married) may be excluded from income if you have owned and lived in the home as your principal residence for two years prior to the sale.
If you have gain that cannot be excluded, you will pay up to 15% of that gain in income tax, assuming you have owned the house for more than one year. |
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.
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EVERYTHING, the government is cutting peoples throats |
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R. T.
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The capital gains exclusion has been recently updated. Now it depends on what percentage of time the home was used as your primary residence. This explains it in detail:
http://taxes.about.com/od/capitalgains/qt/home_sale_tax2.htm |
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abhicho
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A lot more details will be required before this question is answered. I will need answers to the following questions
i) How many years have you been living in the property?
ii) Are you married and filing joint returns?
If you want further details on how capital gains tax is calculated, I suggest you read this article
http://www.countrywiderate.info/avoid-capital-gain-tax-on-property/
I am sure this article will be of great help to you. |
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Jss
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What is your cost basis on the house?
Also if this is your main home and you owned it for two years, lived in for 2 years in last 5 years, you can exclude gain of up to $250,000.
Read: http://taxipay.blogspot.com/2008/03/profit-from-sale-of-your-home.html |
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Kevin
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a hell of a lot |
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Wayne P
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you will loose many $$$$ unless you buy another property. Capitol gains tax will kill ya unless you reinvest. There are ways around it but I'm not willing to go there in a public room. Find a friend ,or a friend of a friend. |
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la_la_land611
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This best answer to your question that i can give you is to talk to your real estate company. Right now the market is down, so its going to be hard to sell your house. |
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