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Old 01-11-2019, 10:40 AM
 
612 posts, read 340,128 times
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I'm selling my house this month and and I'm curious about some of aspects of the situation in regard to taxes.

The house will probably sell for 222900 and I owe about 167000. So after all the cost associated with real estate commission and etc, the net proceeds to me are about 39000.

I have already bought another house, so the 39000 will basically be going into the bank.

Is this what is called capital gain? Am I going to be taxed on the 39000, if I don't somehow get it invested somewhere?

This is new territory for me.
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Old 01-11-2019, 10:43 AM
Status: "2019 Year of the first time home buyer" (set 9 days ago)
 
Location: Just south of Denver since 1989
10,751 posts, read 28,838,771 times
Reputation: 6941
https://www.irs.gov/pub/irs-pdf/p523.pdf
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Old 01-11-2019, 10:44 AM
 
Location: The Triad (NC)
27,495 posts, read 59,485,623 times
Reputation: 30398
Quote:
Originally Posted by Blazin65 View Post
...I'm curious about some of aspects of the situation in regard to taxes.
Call your CPA for any specific answer.

Quote:
....sell for 222900 and I owe about 167000... the net proceeds to me are about 39000.
Is this what is called capital gain?
Yes.

Quote:
Am I ... don't somehow... This is new territory for me.
But not for your CPA.
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Old 01-11-2019, 10:57 AM
 
Location: Austin
7,165 posts, read 17,236,527 times
Reputation: 9714
Quote:
Originally Posted by Blazin65 View Post

Is this what is called capital gain? Am I going to be taxed on the 39000, if I don't somehow get it invested somewhere?
No. Capital Gains is the gain you made over the price you paid. Just because you owe $167k doesn't mean that's where your gain starts. If you paid $180k or $200k or whatever the number is, that's where you start.

Also, if this property was your homestead, primary residence, you do not owe capital gains... probably... unless you sold another primary residence house in the past 2 years...
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Old 01-11-2019, 11:13 AM
 
Location: Rochester, WA
4,352 posts, read 2,385,922 times
Reputation: 12242
Quote:
Originally Posted by Blazin65 View Post
I'm selling my house this month and and I'm curious about some of aspects of the situation in regard to taxes.

The house will probably sell for 222900 and I owe about 167000. So after all the cost associated with real estate commission and etc, the net proceeds to me are about 39000.

I have already bought another house, so the 39000 will basically be going into the bank.

Is this what is called capital gain? Am I going to be taxed on the 39000, if I don't somehow get it invested somewhere?

This is new territory for me.

Capital Gain = Selling price - purchase price


That's how much you GAINED on the property. In order to figure this, we need to know what you originally paid for it. The amount owed or netted doesn't really matter. What matters is how much it went up.



May or may not be taxable, depends on your situation.
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Old 01-11-2019, 01:42 PM
 
612 posts, read 340,128 times
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Quote:
Originally Posted by FalconheadWest View Post
No. Capital Gains is the gain you made over the price you paid. Just because you owe $167k doesn't mean that's where your gain starts. If you paid $180k or $200k or whatever the number is, that's where you start.

Also, if this property was your homestead, primary residence, you do not owe capital gains... probably... unless you sold another primary residence house in the past 2 years...
This is what I was looking for. I paid 219900 for it. Only selling for 200-223K. The real estate bust really killed my neighborhood, along with to many people selling cheap. So I will barely have any capital gain.

Thanks!
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Old 01-11-2019, 02:04 PM
 
Location: Raleigh NC
8,267 posts, read 6,505,321 times
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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%
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Old 01-11-2019, 02:54 PM
 
Location: Asheville, NC
11,593 posts, read 26,124,485 times
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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%
^^^This!
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Old 01-11-2019, 03:27 PM
 
612 posts, read 340,128 times
Reputation: 478
I've actually sold two other houses, but that was several years ago when I barely had enough money to worry about Uncle Sam or taxes. But now that I'm older and paying much more in taxes, I have to get help and advice from forums like these.
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Old 01-11-2019, 03:37 PM
 
67,576 posts, read 68,392,580 times
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the tricky part today is when you turn a rental or vacation home in to a primary . if you later sell the primary it gets tricky today as the tax free exclusion is prorated over the total time of ownership
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