Taxes Vs. Selling My House
Getting ready to sell my house, but ive only lived in it a for 13 months. I know I will have to pay taxes on the profits since I havent lived in it for Two years yet. How much is my question? What is the percentage based on? I live in San Antonio, TX. If that matters.
Thanks to anyone who can respond.
DD
Capital gains rate is 15%.
Thanks for the reply guys. 15 percent is all around though? Its not based on what income braket your in?
The maximum capital gains rate is 15% for your federal tax return. The rate is 5% if you are in a low tax bracket. The bracket you are in, your filing status, and your taxable income all determine how much of your capital gains will be taxed at 5%, and how much will be taxed at 15%.
You should note that if you are forced to sell before two years of ownership and occupancy due to job transfer, health, or other qualifying hardship, you can still qualify for a reduced maximum capital gains exclusion.
Tell us why you are selling so soon? If your reason qualifies, you might not have any capital gains tax at all.
Quote:
On 2006-11-29 17:08, deathdealer wrote:
Getting ready to sell my house, but ive only lived in it a for 13 months. I know I will have to pay taxes on the profits since I havent lived in it for Two years yet. How much is my question? What is the percentage based on? I live in San Antonio, TX. If that matters.
Thanks to anyone who can respond.
DD
If the property was used as a primary residence for less than the full two years, a pro-rated exclusion may be available. This works out to about $342.47 of tax free profit per day per person ($250,000 / 730). This is available if the move was made due to health, work, or other unforeseen circumstances. Health reasons can cover a multitude of situations, including just being sick of living there.
Basically if you are single and you gain does not exceed 133k, you will not have to pay any taxes. If you are married and your gain does not exceed 266k, you will not have to pay any taxes.
Hope this helps
If that is the case, you should not have to pay any taxes on the transaction. See my previous post