Owned a home (primary residence) for 16 years, purchased for $175.000, mortgage remaining $139,999. Also have an equity loan, $94,000. Just agreed to sell house for $810,000. Like to purchase another for $498,000. Capital gain tax amount?
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Anonymous
ANSWERS: 3
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none, primary residence is exempted
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Congrats on winning the real estate game! You now own a home free and clear and have money in the bank!
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yes,there are gains to pay. Let's start with buying the new home for $498K has NOTHING to do with this equation! Those rules went out years, years ago. Also the two loans owing have NOTHING to do with this. Are you married that both you and spouse have owned AND occupied the house? Yes, then you can exclude $500K. No, then you can exclude $250K. Now...bought for $175K, sold for $810, difference is $635K. From that $635K profit, you need to subtract real estate commission (if paid), some escrow fees, some fixing up expenses, any capital improvements (ie swimming pools, added a garage, etc) AND either the $500K or $250K exclusion IF you have not sold another house in the last two years. You need to see an Enrolled Agent for your taxes this year: bring your original purchase papers, any refi papers, and the sell papers along with any purchases (the swimming pool, etc).
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