Question about Capital Gain Taxes on Second Home

[MadManofBethesda]

Originally Posted by coolgato

You need to consult a tax attorney. Your taxes on capital gains depends on your age, too because there is an allowance I think for retired people.

Originally Posted by mathjak107

you get a bigger exemption at 65 but it really has nothing to do with the capital gains just your overall tax rate. but once you hit the amt phase out all your expemptions and deductions do not count .

all you really need to do is run it through turbo tax and you will get an idea. most folks who want to sell a vacation home are are rarely into exchanging for another property.

Coolgato may be thinking of the old tax law that was changed in 1997. Before then, you had to be at least 55 to qualify for the $250k/$500k capital gains exclusion upon selling your house. If you were younger than 55, the only way to avoid or postpone the tax was to purchase a more expensive residence and rollover your gain into that property. Once you reached 55, you could then downsize into your "retirement" residence and qualify for the capital gains tax exclusion.

[berniekosar19]

Originally Posted by mathjak107

when it comes to the taxes you owe there is no amortization on the payment ,it is what ever it is . perhaps you are thinking in terms of getting paid over time from the buyer?.

Yeah, I wasn't referring to the taxes, more about the points/fees, etc. Was quick-typing during a commercial break during the Rangers game so wasn't messaging as well as I should have.