Home Selling in 90033>Question Details

Ric Torres, Home Buyer in

On a $300,000 sale, how much would the seller have to pay on taxes?

Asked by Ric Torres, Wed Nov 14, 2007

Help the community by answering this question:

Answers

4
Hi Ric, I think you're asking about taxes to the IRS so I will answer your question in that regard.

When you sell a property you are normally subject to capital gains tax, which is on a sliding scale relative to your income tax bracket. With a principal residence, if you meet several conditions the gains you make (up to a certain point) are tax-free!

"You can exclude up to $250,000 of the gain on the sale of your main home if all of the following are true.

* You meet the ownership test.
* You meet the use test.
* During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home.

If you and another person owned the home jointly but file separate returns, each of you can exclude up to $250,000 of gain from the sale of your interest in the home if each of you meets the three conditions just listed.

You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true.

* You are married and file a joint return for the year.
* Either you or your spouse meets the ownership test.
* Both you and your spouse meet the use test.
* During the 2-year period ending on the date of the sale, neither you nor your spouse excluded gain from the sale of another home."
1 vote Thank Flag Link Wed Nov 14, 2007
We would need more information to answer that question. when was the property purchase? How much was it purchased for? is it owner occupied? for how long? what are your intentions with profits? are you reinvesting/cashing out? Are you selling for a profit or loss? Lots of possible variations to that question, I'll be more then happy to give you a more detailed answer with more information. Trinidad@listingprice.net
0 votes Thank Flag Link Tue Jul 28, 2009
Hi Ric, this is a very complicated question to answer. Since you are referring to the seller paying taxes after the sale, I am assuming that you are referring to capital gains. There is no straightforward answer since the IRS do have a few requirements to be met for a seller to qualify for the capital gains exclusion. Some of which are: property must be owner occupied for a certain number of years. I would suggest that you talk to an accountant or you can visit the IRS website regarding capital gains.
0 votes Thank Flag Link Wed Nov 28, 2007
Are you referring to capital gains taxes, or perhaps city/county transfer tax, or maybe property tax? A local agent or title company may be able to assist you...
0 votes Thank Flag Link Thu Nov 15, 2007
Erin Stumpf, Real Estate Pro in Sacramento, CA
MVP'08
Contact
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer