Capital Gains
- Thread starter Rubyfruit
- Start date
SINthysist
Rural Racist Homophobe
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- Nov 29, 2001
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- 11,940
Does anybody know any of the laws?
Downsize your home?
I pay my accountant to handle that stuff...
Downsize your home?
I pay my accountant to handle that stuff...
brokenbrainwave
Just draggin around
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- May 6, 2002
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- 18,892
its something like 500k profit and ya gotta pay
G
Guest
Guest
ruby
i dont know for certain and it may depend where you live , but i just sold a house last fall and my account says that as long as you have lived there 2 years you dont have to pay taxes on the money you make!! in my case i didnt have to woory i spent more but i would check with someone for sure!!! somebody that knows for sure , i think you can call the irs if you dont have an accountant!!
i dont know for certain and it may depend where you live , but i just sold a house last fall and my account says that as long as you have lived there 2 years you dont have to pay taxes on the money you make!! in my case i didnt have to woory i spent more but i would check with someone for sure!!! somebody that knows for sure , i think you can call the irs if you dont have an accountant!!
Texan
'nuf said
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- May 31, 2001
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hello Ruby,
The rule is that if you have lived in your house for two of the previous five years, you don't have to pay capital gains taxes on the "profits" of the sale.
Now, there are other things that come into play. You will subract the "cost basis" from the selling price of the house. The cost basis includes everything that you owed on the house, as well as, everything that you paid for maintenance and improvements on the house while you were there. (If you kept the reciept for repairing that leaking pipe, then at the sale, it's part of the "cost basis")
Also, once you sell the house, if you put the net profits from the house into a new house as either a down payment or "points" at closing, then you don't have to pay capital gains on the profits. You have three years to reinvest the profits into a new house, however, the gains will be reported to the IRS at closing and if you don't show an immediate reinvestment, it can be used as a "trigger" for audit.
Don't know if this helps......
The rule is that if you have lived in your house for two of the previous five years, you don't have to pay capital gains taxes on the "profits" of the sale.
Now, there are other things that come into play. You will subract the "cost basis" from the selling price of the house. The cost basis includes everything that you owed on the house, as well as, everything that you paid for maintenance and improvements on the house while you were there. (If you kept the reciept for repairing that leaking pipe, then at the sale, it's part of the "cost basis")
Also, once you sell the house, if you put the net profits from the house into a new house as either a down payment or "points" at closing, then you don't have to pay capital gains on the profits. You have three years to reinvest the profits into a new house, however, the gains will be reported to the IRS at closing and if you don't show an immediate reinvestment, it can be used as a "trigger" for audit.
Don't know if this helps......
desert spike
Literotica Guru
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- May 14, 2002
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- 793
Here's the IRS quide url for publication no 17. Taxes for Individuals. Go to Chapter 16 entitled selling your home.
http://www.irs.gov/pub/irs-pdf/p17.pdf
http://www.irs.gov/pub/irs-pdf/p17.pdf
floridaguy64
Cunnilinguist, Esq.
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- Jul 9, 2001
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- 1,038
Well........... since you asked;
The current law of the land relating to capital gains on your primary residence is anything over a $250,000.00 gain is taxable income. That does not mean if you sold your house for 300k that you'd owe taxes, it means that if you've live there for over 2 years and made up to 250k in profit on the sale of the "PRIMARY" residence, it would be tax free.
Now if you've lived there for under the two year period, I believe you'd fall under the old law of 100k profit, but you really need to consult a CPA.......... it's worth the consultation fee, and BTW.... it is never worth "Downsizing" a residence...... you'll always loose in the long run.
I say this as a General Contractor and a former corporate accountant.
Spend a few bucks now on a CPA and you'll save a mint in the process.
Rubyfruit said:
The current law of the land relating to capital gains on your primary residence is anything over a $250,000.00 gain is taxable income. That does not mean if you sold your house for 300k that you'd owe taxes, it means that if you've live there for over 2 years and made up to 250k in profit on the sale of the "PRIMARY" residence, it would be tax free.
Now if you've lived there for under the two year period, I believe you'd fall under the old law of 100k profit, but you really need to consult a CPA.......... it's worth the consultation fee, and BTW.... it is never worth "Downsizing" a residence...... you'll always loose in the long run.
I say this as a General Contractor and a former corporate accountant.
Spend a few bucks now on a CPA and you'll save a mint in the process.
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