my husband and myself are selling a home for $ 652,000 and that home cost us $6 5,000 how much tax we will have to pay at end of the sale?

Asked by Kitty, 11417 Fri Oct 8, 2010

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Ann Marie La…, Agent, Howard Beach, NY
Sat Oct 9, 2010
You really should talk to a CPA he or she can best advise you
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sat Oct 9, 2010
Consider asking your attorney the question and or tax professional--he/she can best advise.
0 votes
Ralph Windsc…, Agent, Hauppauge, NY
Sat Oct 9, 2010
You would need to consult your tax attorney or accountant on this question. However, when I received my training as a Senior Real Estate Specialist, the $65,000 plus the cost of the original sale plus any capital improvements on the home should be your cost basis. If you are both on the deed, you should have a $500,000 ($250,000 for each of you) exemption. Once you sell your home, you would subtract the costs of the sale (closing costs-real estate compensation, transfer taxes, attorneys' fees, etc.) from the sales price, then subtract the $65,000 (less amortization taken) and any capital improvements you made on your home, then subtract the $500,000. Whatever is leftover may be leave you with capital gains exposure. If you are purchasing another home, you may want to speak to your accountant or tax attorney about a 1031 exchange. If you do this, you may not have any exposure.

Ralph Windschuh
Associate Broker
Century 21 Princeton Properties
631-467-0009
0 votes
Gail Gladsto…, Agent, 11743, NY
Fri Oct 8, 2010
Each owner is allowed $250,000 of profit on the sale of a home before it is taxed. NYState Transfer tax, however, is $4 per $1000 sales price...seller pays.
Web Reference:  http://GailGladstone.com
0 votes
Lisa Thorik…, , San Diego, CA
Fri Oct 8, 2010
This is outside the professional realm of Realtors. Research some tax accountants, ask associates for referrals. Main factors are was the home your primary residence or an investment.
Web Reference:  http://www.lchometeamsd.com
0 votes
Kevin Olson,…, Agent, Colorado Springs, CO
Fri Oct 8, 2010
Hello Kitty,

Your second number isn't complete, can you post an answer to your question with the correct number?

Thank you
0 votes
Lori Lincoln, Agent, Dighton, MA
Fri Oct 8, 2010
Kitty,
Is it $650,000 that you paid or $65,000? Looks like 65. Your accountant is the expert on this question so please ask your accountant before you take the advice of an agent. With that said. I believe you would be liable for anything over $500k in profit tax. The exempt amount is $250k per person..provided that you have occupied at the property for 3 years of the last 5 years. If it is an investment property or a vacation home, you would be liable for all of the capital gains tax. Again please speak with an accountant. I am not an expert on this.
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