Home Selling in Troy>Question Details

Mike7777, Home Seller in Troy, MI

if i sell my house do i have to pay a tax

Asked by Mike7777, Troy, MI Mon Jun 1, 2009

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Mike7777,

Is this your primary or a second home? I believe they may be treated differently. You can review the Sale of Home publication from the IRS online at http://www.irs.gov/pub/irs-pdf/p523.pdf This may provide some of the information you're looking for in your question.

Only a tax professional can advise you whether you have to pay Federal or State taxes on the sale of your home.

When interviewing agents, ask them to provide a net sale worksheet with their presentation. This will estimate all the fees and taxes (other than Federal and possibly State) you will pay at closing. Note: this is only an estimate.
Web Reference: http://mi-living.com
0 votes Thank Flag Link Mon Jun 1, 2009
Mike,

Without your address, I was unable to determine how long you have owned the property and whether you will be an exception to most sellers who are far from concerned about capital gains. Most are asking is there a tax credit for the loss I am faced with. Unfortunately, if it's residential home there is no relief for our losses. With that said, there are two taxes that sellers could be faced with, capital gain tax and state and county transfer tax. The total tax typically paid for state and county tax is $8.60 per $1,000 of the sales price. Provided you have owned the home 2 of the last five years as your principle residence, you should not owe capital gains for up to $250,000 as a single owner and $500,000 as a married couple. You may also be exempt from paying the state tax depending a a formula related to the assessed value. These exceptions are related to principle residences only and we always advise people to seek tax advise from a qualified tax accountant to obtain accuarate information and advise regarding your circumstances.

If you are seeking a Realtor to market,y manage, and represent you in the sale of the home in question, contact us at your convenience.

Kay Pearson, CRS
Associate Broker
Real Estate One - Max Broock
31 S. Main STreet
Clarkston, Michigan 48346
248-860-0366
kaypearson@maxbroock.com
Web Reference: http://www.KayPearson.com
0 votes Thank Flag Link Mon Jun 1, 2009
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