Laws For Short Terms Sale In NJ
Hey everyone,
I am a complete novice when it comes to Real Estate, besides the fact that I am really interested in learning more..I just read articles and books to learn.
I recently bought a house( 6 months back ) in NJ and would like to sell it. I owe the bank 130 and I am getting 230.
I am wondering will I be taxed on the 100k profit that I made. Or can am I except from it as it is my primary propert. If so what do I have to pay and how much..please advise.
Thanks,
Sat. :-? :-?
If you live in the house for more than 24 months, you pay no federal income tax on the profits. You will pay for only owning the house for 6 months.
You will pay the new (read very high) realty transfer tax that was recently increased to nosebleed levels in order to close the budget gap in NJ.
I have lived in the house only for 6 months..so what would I pay on 100k profit can you suggest.
Let me ask you--why are you selling? If you had to move due to what the IRS describes as an "unforseen circumstance" you may be able to keep part of that gain exclusion.
I've written an article on this that may be helpful to you. If you have any other questions, please feel free to ask.
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=415
The reason I want to move is because I bought the house for 150 and getting an offer 230..That makes it 100k in profit..Is that a good amount..So I want to book my profit and buy another property next year.
Open to Suggestions.
Sat,
That is a good profit but you may want to look at some other things first..
Depending on where you plan on moving either in state our out of state you need to see what the current market is for that area..
The reason why I say that is because since the NJ market is so highly inflated right now you may not get that much more for your $$ but that also depends on your financial situation and part of the state you are looking to buy...
Shop around first and see whats out there in your price range then if you see some stuff that is worth your while make the jump!!
-just my 2 cents...
FrankAIX
I was just thinking to moving into a rental for a year and then buying something next year when the market drops slightly as per market anticipation. I am assuming that as interest rates go up market real estate goes down. Please let me know.. Can you tell me more about tax..how would i be taxed on short term gains..or I can deffer it for 2 years as the profit is from my primary propert.
Please accept my appolgies if my question are way to naive.
Thanks again,
Sat.