This sounds like it is an investment property, so the rules are very different than if you bought this as your primary residence. The difference between your COST and the SALE PRICE for the home would probably be considered as a "capital gain" and is taxable. Cost (usually called cost basis) is the sum of your purchase price, plus all the money spent to renovate the home, including carrying costs like interest and taxes while you are fixing up the property. The sale price is the net amount you sold the property for, which is the gross sales price minus the cost to sell the home. That includes charges like any real estate commission, legal fees, real estate transfer fees and such. The net difference, or "Gain" is usually taxed at a lower rate than ordinary income. That tax rate depends on the lenght of time you owned the property, and your total income as well! This definitely is a question you want to review in detail with the tax professional who does your taxes.

since it's not your primary residence you can't take a deduction for it anyway. so there is no difference if you sell it today or 6 months from now. The only way it would make a difference is if you lived in the home as a primary residence for 2+ years. You will need to pay a realty transfer fee though. You can calculate the exact cost on the sellers page of http://www.justjerseyrealestate.com. Good Luck to you.

Camille Miller
Broker/Owner
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