Home Selling in 76063>Question Details

Free2live, Home Seller in 76063

If I sell my house for less than I purchased it for but I make a profit, do I still have to pay capital gains in the state of Texas?

Asked by Free2live, 76063 Sun Mar 14, 2010

Bought it for $243,000 (put down $100,00.00) in 2005. Selling it for $215,000. My net will be approximately $61,000.00 after closing, real-state etc. fees. Do I still pay capitol gains if I don't buy or if I buy a lesser value home? Or I don't buy after two years? I live in Dallas Texas

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100-61=$39k loss. You may be able to use the loss on your income tax. Check with a CPA to be sure.
0 votes Thank Flag Link Tue Mar 16, 2010
If this is your principal residence or homestead, you can exclude up to $250,000 individually (or $500,000 per married couple) if you lived-in and owned the house 2 out of the past 5 years. There are other exclusions, but they are very specific and I would not know if any apply with the given facts. This exclusion is not dependent upon future purchases.
Curious you claim your net is $61,000 when you sell for less than the purchase price. My math reflects a net loss of $28,000 (purchase price of $243k minus sale price of $215k equals -$28k). You cannot write-off a loss of your home.
0 votes Thank Flag Link Tue Mar 16, 2010
You should consult an accountant to find out whether you can take a loss. You are not making a profit, just because the loan that you need to pay off is less than your purchase price. I believe it is called your tax basis, but that is your purchase price plus any improvements.
0 votes Thank Flag Link Sun Mar 14, 2010
For a personal and accurate answer consult with your tax professional--he/she can advise you best in all tax/capitol gains matters.
0 votes Thank Flag Link Sun Mar 14, 2010
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