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After selling a house how much income tax do you pay?
Alaska selling house for 190k, to pay 107k mortgage that gives me 83k i don't know anything about tax can you help me estimate??

Posted by ♥Come Break Me Down♥ on 08/27/07
Total Answers: 7

Answers-

I BELIEVE, once in your life, you can keep the profit from a house sale tax free. But with the sort of money involved, I'd strongly recommend you get professional advice. You should also consider whether you might have have more profit from a house sale, later in your life.

Answer posted by dryheatdave on 2007-08-27 21:28:43

You won't pay income tax. It would be capital gains tax. A lot of variable come into play but if you made 83K in Capital Gains (Not sure how much you paid for the house so I am using the highest number) and you owned the house for 2 years and you lived in the home then you should be exempt from any tax

Answer posted by GGLC on 2007-08-27 21:32:58

if it is not an investment property and you have been in the house a few years you will not pay any taxes.

Answer posted by scottsmylie on 2007-08-27 21:43:56

The first $250,000 profit is tax free if: the property qualifies as your personal residence and you resided in it for 24 of the past 60 months. A married couple who jointly own the house can combine their tax break for up to $500,000 in tax free profit. The time period is commonly thought to be 2 years. Yes, you can qualify in 2 years, but you can also aggregate the 24 months during any 5 year (60 month) period of time. There is no limit on how many times you can do this. Theoretically you can do it every 24 months. What happens to your profit over $250,000? That is taxed as capital gains on your federal return and probably your state as well. You should always consult your qualified tax adviser to get specific information regarding your tax liability and how to calculate your profit in the house.

Answer posted by artwhiterealtor on 2007-08-27 21:45:15

Need more info. How long have you owned and lived in the house? Is it your primary residence? Here's the rule, if you have owned and lived in the house for 2 out of the last 5 years, you can exempt from taxes any gain up to $250,000 if single and up to $500,000 if married. As long as you have met the 2 out of 5 rule your gain would not be taxable at all. If you have not lived in the house for 2 out of the past 5 years, but have owned/lived in the house for longer than 1 year your gain would be long-term and would be taxed at 15% (5% for those in the 10 or 15% brackets). If you have owned/lived in the house for less than 1 year, it would be short-term gain and would be taxed at your regular tax bracket rate.

Answer posted by PepsiLime on 2007-08-27 21:52:11

After selling a house, assuming it is your principal residence and you lived there at least the last 2 years straight, you can exclude the money received from the sale of your home because it is under the amount of $250,000 exempt for single tax filers and $500, 000 for joint/married tax filers. If this is a second home, not your principal residence, then you would be taxed capital gains taxes up to 15% if held over a year.Gains/profits held under one year are taxed as regular income (whatever you state's income tax is). I'm figuring no estimate needed because you don't have any taxes to pay. I know this is pretty basic, but I hope it helps

Answer posted by J k on 2007-08-27 21:57:12

Today's your luck day. If and only if you lived in the property for 2 years and 1 day as your primary residence. Internal Revenue Code Section 121 states income made from the sale of your primary residence is exempt from state and federal taxes up to $500,000 if you're married and $250,000 if you are single. Hope this helps Terry http://www.Welcome2Arizona.com

Answer posted by Terry S on 2007-08-28 16:21:46

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