Question Details

Suzy, Home Seller in Pullman, WA

Do I pay Capital Gains on the loan amount or original purchase price of my home? I've refinanced but haven't

Asked by Suzy, Pullman, WA Thu Aug 14, 2008

lived there for two years yet...

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Answers

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Please be advised that your tax adviser is the best to answer this question and I'm not a tax adviser.

Captial Gains laws are changing as of January 1st with regard to primary residences, so please investigate that further; I discussed it briefly on my blog.

In answer to your question, Capital Gains are calculated as the difference between your sales price and the basis (purchase price plus improvements). If you have taken money out in a refinance, that is still a taxable gain at the close of sale.
0 votes Thank Flag Link Thu Aug 14, 2008
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