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Old 01-11-2019, 10:59 PM
Status: "New home" (set 26 days ago)
 
Location: You call this living?
3,425 posts, read 1,381,820 times
Reputation: 8848

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I believe you deduct the purchase price PLUS the cost of any improvements from the sale price to arrive at capital gains.

And they aren't federally taxed until the gain is over a certain figure...$250,000?
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Old 01-11-2019, 11:38 PM
 
Location: El paso,tx
1,624 posts, read 641,573 times
Reputation: 2606
Quote:
Originally Posted by BoBromhal View Post
if this was your personal residence, for 2 or more years, and your only personal residence sold (and it MUST be since you said you're unfamiliar with the process)

the chances that you will have no capital gains tax effect is about 99%
2 of the last 5 yrs. You pay no capital gains up to 250k for single person or 500k for married couple. (Note....that 250k/500k over amount you bought for...not 250k selling price)
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Old 01-12-2019, 02:41 AM
 
67,576 posts, read 68,392,580 times
Reputation: 45432
plus even if you are over the excluded limit that still does not mean you will pay taxes . if the taxable part of the gain plus your other income is within the zero capital gains bracket it escapes taxes too.

so the two wild cards are whether the house was a 2nd home or rental at any point , and whether or not you will be in the zero capital gains tax bracket
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Old 01-12-2019, 11:48 AM
Status: "43 restaurants within 6 blocks of my house" (set 5 days ago)
 
Location: The Berk in Denver, CO USA
13,563 posts, read 19,348,941 times
Reputation: 21610
Quote:
Originally Posted by Diana Holbrook View Post
Capital Gain = Selling price - purchase price
Not quite true.
Capital Gain = Selling price - (purchase price + improvements) - selling expenses
Taxable gain = Capital Gain - $250K, if you have lived in the house for 2/5 years
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Old 01-12-2019, 12:35 PM
 
Location: Rochester, WA
4,352 posts, read 2,385,922 times
Reputation: 12247
Quote:
Originally Posted by davebarnes View Post
Not quite true.
Capital Gain = Selling price - (purchase price + improvements) - selling expenses
Taxable gain = Capital Gain - $250K, if you have lived in the house for 2/5 years

You are right on the details!
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Old 01-12-2019, 01:07 PM
 
Location: Verde Valley
3,998 posts, read 8,813,493 times
Reputation: 3330
Have you checked if there is a fee to get out of your mortgage? These can be fairly hefty and can sometimes be reduced/waived if you use the same bank for your next mortgage.
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Old Yesterday, 11:06 PM
 
Location: San Francisco Bay Area
4,347 posts, read 2,306,778 times
Reputation: 8501
Quote:
Originally Posted by davebarnes View Post
Not quite true.
Capital Gain = Selling price - (purchase price + improvements) - selling expenses
Taxable gain = Capital Gain - $250K, if you have lived in the house for 2/5 years
Double that $250k exclusion to $500k for married couples.

https://www.nolo.com/legal-encyclope...ome-29901.html
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Old Today, 10:22 AM
 
Location: Loudon, TN
5,201 posts, read 4,443,175 times
Reputation: 17365
Quote:
Originally Posted by adventuregurl View Post
Have you checked if there is a fee to get out of your mortgage? These can be fairly hefty and can sometimes be reduced/waived if you use the same bank for your next mortgage.
Only if your mortgage has a pre-payment penalty. Not common today, but a possibility nonetheless. FHA and VA loans don't have one. Check your loan paperwork, or call the mortgage lender to find out for sure.
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