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Melissa Spri…, Home Buyer in Charlotte, NC

Do I have to pay tax on my gain from the sale of my condo?

Asked by Melissa Springer, Charlotte, NC Thu Apr 17, 2014

I will have owned my condo for 2 years at the time I will be listing it for sale. Will I have to pay taxes on the capital gain I receive from the sale of my condo? Also, what time of year is best to list a home for sale?

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The first thing I would recommend is to double check with your accountant. However, most likely if you lived there most of the time for the last 2 years you would not have to pay capital gains tax on the proceeds. ENJOY!

Next, the time of year depends on several factors. Right now is an AMAZING time because of the shortage of inventory paired with the low interest rates for buyers. It's a perfect storm. In general, there are more buyers looking in the Spring/Summer, and theoretically there are more homes on the market at that time which increases competition for your home. In practice, I find another big sales time is actually 4th quarter because while there are fewer buyers, the buyers are serious because they typically need to move before January. All of these tid bits are good to know, but the truth is a really good agent would be able to look at the market and look at your home and put a strategy together that is right for your property and your personal goals. Every one of my marketing strategies have been different for every home and client I have represented. Find the agent who takes the time to tailor fit it for you!
0 votes Thank Flag Link Wed Apr 29, 2015
As answered, residency restrictions typically apply, and you should consult your tax profession for tax related advice.
0 votes Thank Flag Link Thu Apr 17, 2014
In regard to capital gains, the general policy is that singles have a credit of $250,000 and couples receive a credit of $500,000 from the adjusted price of the home (after factoring in capital improvements you made to the home) before the gains tax kicks in.
There is a residency requirement, too............ if you've lived in the home for the past 2 years, the requirement is satisfied.

(example: you, as a single, paid $300,000 (no improvements made) - sell for up to 550,000 = no tax owed........however........sell for over 550,000 and taxes will begin to kick in)

That was a VERY abbreviated explanation - a simple overview - so I'd advise you to speak to a tax adviser for more specific information on your specific finances.
You can also google this topic and find a lot of information.

Traditionally, Spring is the "best" time to list as buyers with children will want to be settled in before school starts in Sept.
That being said - Anytime is the "right time" to list if there is a buyer out there who wants your home, any buyers are out there all the time!

That time frame can also vary depending on where someone is located.

Best wishes...........
0 votes Thank Flag Link Thu Apr 17, 2014
For the tax question...Always get your tax advice from a trusted CPA or Tax Attorney. Real estate agents are neither licensed nor trained to offer tax advice. Of course that does not stop some from offering...

As for best time of year to list. Every market is unique, but generally speaking there is more activity in Spring. Unfortunately this brings more competition. Get with a local real estate agent and he or she can provide a market analysis for your property. Good luck!
0 votes Thank Flag Link Thu Apr 17, 2014
Typically if you have lived in the condo for 2 of of the past 5 years you will be exempt up to $250k for a single person and $500 for a couple. You should definitely speak to your accountant to be sure.

Chris
0 votes Thank Flag Link Thu Apr 17, 2014
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