Anyone tell me if there taxed on the entire home amount or the profit??
What are the percentage rates I can expect to pay??
Anyone know a way out of paying them?? Is it one year or two. Realtor told me that she heard it may have changed to 1 yr?
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Anyone tell me if there taxed on the entire home amount or the profit??
What are the percentage rates I can expect to pay??
Anyone know a way out of paying them?? Is it one year or two. Realtor told me that she heard it may have changed to 1 yr?
Capital gains is the difference between what you bought it for (basis) and what you sold it for...That's the gain...On homes there is a one time exclusion, can't remember how much, but i'd think that most folks want to save that till later in life...
if you have lived there more than two years you don't pay any
if its a rental its on the profit only
I made a $100k in profit in 14 months.. What would it be?
Can I do a 1031 and defer it till later? Just exploring my options!
I think you need to be over55 for it to happen . $250,000 for each , husband & wife
2 years.......
I missed that class in College...lol You should talk to a tax pro, before you get hosed with taxes...
I made a $100k in profit in 14 months.. What would it be?
Can I do a 1031 and defer it till later? Just exploring my options!
yes but there are limits
If it is rental property, you can do a 1031 tax deffered exchange however, yo must identify (be in escrow) the new more expensive property within 90 days of close of excrow.
If it is you primary residence, you can take 250k for single or 500k married tax free. You can take the tax free money every 2 years. The code reads you must have lived in the house 2 years out of the last 5.
I think capital gains is like 30%. I am not sure though, I think BUsh lowered them.
Capital Gain equals net sales price (sales price less costs) minus purchase price minus any capital improvements, (plus accrued depreciation if investment property)
If the house was your personal residence, you can either pay the tax of 15% of the capital gain, or defer the gain by purchasing another home of greater value--I think within 2 years.
If the house was an investment property, and the escrow has already closed (and you received your "profits"), you'll have to pay the tax. If the escrow hasn't closed, you can still set up a delayed 1031 exchange to defer the gain into a suitable replacement investment property, subject to specific IRS rules.