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Loading ...If I sell a home do I have to pay income tax,?
If one sells a primary residence, at what age is he exempt from paying income tax on the proceeds. If he buys another house, does he or she have to invest all of the proceedsof the first house in the new house. Is this a one time thing
the exemption from income tax on the sale of the home and at what age does this exemption take place.
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Tags: age, first house, home, house, income, income tax, proceeds, proceedsof, residence, tax, thing, time, time thing
6 Responses to “If I sell a home do I have to pay income tax,?”
yes, you pay taxes for all income earned.. however, you may get a rebate or a write off or something… save all information and talk to a tax accountant…
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Capital gains – which is taxed at a different (lower) rate than income.
And definately talk to an accountant.
PS Depending on where you live, you may want to go for a 1031 exchange and buy a better/bigger place.
http://www.richardsonrealestateteam.com/Northwest_Bakersfield_CA_listings/featured.shtml
http://www.homegain.com/local_real_estate/CA/bakersfield.html
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Check with your state, but if it’s your primary residence I do not think you have to pay tax if you sell it. Now, if it’s a second home, you probably would have to pay capital gains tax. Check with the IRS.
http://www.irs.gov
http://www.richardsonrealestateteam.com/Northwest_Bakersfield_CA_listings/featured.shtml
http://www.homegain.com/local_real_estate/CA/bakersfield.html
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The general rule is that if you’ve lived in the primary residence for 2 out of the past five years, $250,000 gain is excluded from taxes if you’re single and $500,000 gain is excluded if you’re married.
http://www.richardsonrealestateteam.com/Northwest_Bakersfield_CA_listings/featured.shtml
http://www.homegain.com/local_real_estate/CA/bakersfield.html
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CFP LL is correct, and you can do this over and over again as long as you live in the house 2 out of the last 5 years as your primary residence. There are no longer any restrictions on whether you buy another house or blow the money on popcorn.
CFP AP
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http://www.homegain.com/local_real_estate/CA/bakersfield.html
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Yes and no.
Generally speaking, for individuals there is a $250,000 tax exclusion and for married couples, there is a $500,000 tax exclusion. If your gain from the sale of your house is less than these limits, you may not have to report the sale on your taxes. If the gain from the sale of your house is more than these respective limits, then you will have a taxable gain.
However, there are minimum requirements for living in the home to qualify for these exclusions. For instance, within the 5 years prior to the sale of the home, you must have lived in the home as your primary residence for at least two years and you must have owned the home for a minimum of two years.
I don’t think there are any age restrictions or limitations or exemptions.
And this is currently not a one time event. As long as you meet the minimum ownership and residency requirements, you can qualify for the exemption. This may mean that you could buy and sell a house every two years (full calendar years) and qualify for the exemption.
But tax laws are always changing. For more accurate and up to date information about your particular tax situation, consult the IRS documents and/or a professional tax consultant. I am not a professional tax consultant so my advice should not be considered a trusted source.
http://www.irs.gov/individuals/article/0,,id=132621,00.html
http://www.irs.gov/businesses/small/industries/article/0,,id=98921,00.html
http://www.richardsonrealestateteam.com/Northwest_Bakersfield_CA_listings/featured.shtml
http://www.homegain.com/local_real_estate/CA/bakersfield.html
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