Home Selling in 92867>Question Details

gipykrop, Home Seller in Los Angeles, CA

Tax result if I sell my home now? About $700,000., bought at $210,000. in 83.

Asked by gipykrop, Los Angeles, CA Fri Jan 25, 2013

Help the community by answering this question:


Michelle Gonzalez’s answer
You're asking about tax results if you sell your home now. What would be the other option? Waiting until.....? If you wait and values continue to increase you will have more equity than you do now which may have more tax consequences for you down the line. Are you planning on down sizing? You may be able to save money on your next property. Call or email me and I can help you figure out what the best options are for you.

Michelle Gonzalez DRE# 01427179
RE/MAX College Park Realty
0 votes Thank Flag Link Sat Jan 26, 2013
Tax laws are ever changing. You need a CPA to help figure it out. If you need a name of a good CPA contact me for the number. Thanks 310 922-4663
0 votes Thank Flag Link Fri Jun 20, 2014
Contact a CPA for all tax related questions. If you have any Real Estate questions I would be happy to answer them for you. Best of luck to you. - Ann Urias 714-588-7676
0 votes Thank Flag Link Thu Mar 27, 2014
Sounds like you need to consult with a CPA or tax professional to determine the tax consequences. Real Estate Agents are prohibited from giving tax advice - we could lose our license for doing so. That said, it sounds like you are in a great position to make a profitable sell and I would be happy to do that for you. Please consider a consultation with me. It is FREE and I can come to you. Contact:

Larry Webb, Ph.D., MBA
Broker Associate/Agent – REALTOR®
(714) 222-1465
Century 21 Award - Fine Homes & Estates
Orange County, California - 92867 Specialist
E-Mail: DrLarryWebb@cox.net
Video Biography: http://www.DrLarryWebb.com
Website: http://www.DrLarryWebb.com
See my professional recommendations on Trulia.com
CalBRE Real Estate Broker’s License: 01413405
0 votes Thank Flag Link Thu Mar 27, 2014
Its a great time to sell http://www.annurias.com/ we offer 1% Listing fee - In regards to taxes check with your CPA
0 votes Thank Flag Link Mon Mar 18, 2013
$250K. for single and $500K. for couple no capital gain. Best is talk to your CPA for more clear info.
0 votes Thank Flag Link Fri Jan 25, 2013
Conrats on having great equity in your home but this is a question you should address to your tax advisor or accountant.
0 votes Thank Flag Link Fri Jan 25, 2013
Best to talk to your accountant regarding how the sale will impact you tax wise. It is wonderful that you have so much equity in your home. Of course if you do sell are you looking to buy something else and down size. move out of the state, invest in rental property or....? These are all things to look at and discuss with your accountant/CPA. Also don't forget there are costs invovled in selling your home that are deducted off the sales price along with any improvement costs.

Lori Hanson
OC Homes Realty
DRE 01405146
714-585-5236 Cell
0 votes Thank Flag Link Fri Jan 25, 2013
This question is best proposed to your tax consultant......

Linda M. Lukas
0 votes Thank Flag Link Fri Jan 25, 2013
Hello Gipykrop,

First off I would advise you to talk with a CPA, but the California law remained unchanged regarding the capital gains portion of your sale. There are things that will affect the amount of potential tax liability you will face. Is the home you are selling your principle residence (lived there at least 3 of the last 5 years) and are you married and file taxes jointly? The typical state and Federal taxes will apply depending on where the house is, your income, and more.

There were many new laws enacted at the beginning of the year but capital gains rates on the sale of principal residences will remain unchanged and continues to exclude the first $250,000 for single taxpayers and $500,000 for married couples.

Real briefly and there is more to consider but...

If you can claim the $500,000 exemption then you should be fine, 700,000 - 210,000 = 490,000 and there may be other expenses that can help bring your 'gains' lower (again your CPA can help).

If you can only claim the $250,000 exemption then the new capital gains tax that passed in Obama's health care bill (crazy that is even in a health care bill) then you may have an additional 3.5% tax to pay on the capital gains portion only.

If you have any other questions I am happy to get an answer and get back to you.

Good luck with your sale,
Brian Wilson, Realtor
949-933-0852 cell/txt
DRE #01321478
0 votes Thank Flag Link Fri Jan 25, 2013
Seek your CPA or Tax Attorney for the most accurate information. They will need to consult the tax code, especially there have been so many changes this year. In general, It is going to depend on your age and several other factors.

Also, there is something called a 1031 exchange which can exempt you if you sell your property and purchase another property for a similar price. Again, consult your CPA or Tax Attorney for exact details.
0 votes Thank Flag Link Fri Jan 25, 2013
Thank you. Could you please give me a phone number that I might talk to you?
Flag Fri Jan 25, 2013
Joe is correct in that you should talk to your tax advisor and that the first $500,000 gain for married couples is exempt. There are two additinal things to check with your tax professional on. First, when you purchased your home for $210,000 was there a gain from a previous sale that was deferred? This will adjust the cost basis. Second, with the new 'Obamacare' law there is a new tax that you may have to pay given the size of your gain.
Good luck,
0 votes Thank Flag Link Fri Jan 25, 2013
Hi Gipykrop; upto $500,000 as a couple no capital gain tax. I certainly suggest you consult your CPA as far as tax goes. Good Luck;
Shadi Kian
DeltaMax Mortgage/Realty
0 votes Thank Flag Link Fri Jan 25, 2013
I am 73, only $1400. per mo. income, no mortgage, excellent credit, Zillow says house worth over 700,000. I bought it from a divorce in 83 for $210. Have about $100,000. in recent remodeling. Can I get any loan other that Reverse Mortgage, which is too expensive. I may be better off selling or renting it. Thank you.
Flag Fri Jan 25, 2013
Joes answer is correct.

Even if you're not married, ( Or no longer married.) you can deduct the first $250, 000 of your gain, and then start to look for additional deductions, such as acquisition costs, any improvement costs over the past 30 years, and any potential selling costs.

Seek a qualified tax advisor to help you find all the helpful deductions. Usually, a real estate agent, like me, is not qualified to give you such advice, so take what I've suggested with a grain of salt.
0 votes Thank Flag Link Fri Jan 25, 2013

You should probably check with your CPA, but if you are married each of you can deduct $250,000 in capital gains on the sale of a principal residence. Therefore with you and your spouse you can deduct $500,000 and NOT pay any capital gains.

Joe Homs, Realtor
Web Reference: http://Www.thehomsteam.com
0 votes Thank Flag Link Fri Jan 25, 2013
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