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Hey was curious what kinda of fees or taxes im in for.. Bought a house with a friend to flip in August 2012. Redid everything..roof, windows, floors, finished basement, new basement bathroom, kitchen, granite, tiled, everything basically except just painted siding. Most of work we did ourselves except a couple of those big projects. Years went by, we got comfortable living and now were ready to sell. I heard something about capital gain under 3 years is different then over 3years, not sure if this applys to houses also. Its been a little over 3 years now and starting to worry that my profit is goin to go back to uncle sam. I live in brookhaven in shirley. Any insight would be much appreciated if you've been down this road before and know what to do and what not to do. Also are people having luck selling it on own and how, or should I just go through a realtor making it easier. Thanks alot
The gains tax question can't be answered in the abstract. For one, it sounds like you might have been living in this house and not left it empty for 3 years. If there is a gain, there may not be capital gain taxes due (on the first $250/500K of gain) if you lived in this house as a primary residence for 2 years since you owned it.
There are many other costs, including transfer taxes (wholly separate from capital gain taxes, if any) that are due to Uncle Sam at closing. Search for a closing cost calculator to determine those costs. If this was not a primary residence, you can't figure out whether or to what extent that there is a capital gain until you add up purchase price, capital improvements and transaction costs compared to the net proceeds from sale. What else might be deductible from or added to any gain depends upon, among other things, whether this was a business or personal purchase. In the abstract, the capital gain tax rate varies from 20-30%.
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