Question
I could have to pay capitol gains tax if my home sells. How can I calculate what the tax might be?
I am considering putting my house up for sale. If it sold I would have to pay capitol gains tax since I have only owned it 1 year. I could have as much as a $100,000 profit on the home. How can I figure out what the capitol gains tax would be, this will help me decide if I should reconsidering puttng it on the market at this time. If it is relevent I live in Wisconsin.
3 weeks ago - 6 answers
Best Answer
Chosen by Asker
If you owned it more than 1 year but less than the 2 years necessary to qualify for the exclusion, the long term capital gains rate of 15% will apply. If you owned it 1 year or less, it's taxed at your marginal rate. However with that large of a hit it may well bring you up one or two brackets in the process.
3 weeks ago
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Other Answers
There are no capital gains tax on a primary residence if the profit is under $250,000 for a single person, $500,000 for a married couple.
by MVD34- 3 weeks ago
amazing how manny spam sites you get in reply..but on the bussiness the tax is going to depend on which state you live in ( if in the US ) and your best bet is to talk to someone at one of the tax places like HR BLock
by Anona M- 3 weeks ago
See IRS publication 523 for the full explanation of what happens. However, as you have only lived in the house for one year, you will have to pay capital gains tax, which is on the difference in the basis of the house between when you bought it and sell it. So, the cost basis is the purchase price PLUS: * Any taxes or duties you had to pay at that time for the purchase. * Any improvements that you have made, such as a new kitchen etc., but excluding normal maintenance such as painting. The basis when you sell is the selling price PLUS: * Realtor fee * Any taxes or duties you had to pay at that time for the sale.
by MadMan- 3 weeks ago
If you have last year's tax software handy, run the numbers. A $100K profit is a huge spike in income and may push the REST of your income into AMT. That is, you get the 15% on the house (if you held it longer than one year), but you pay closer to 26% on the non-house income.
by the tax lady- 3 weeks ago
if you owned it more than a year and will have a cap gain, it will probably be 15%
by tro- 3 weeks ago
How could you possibly have a 100,000 gain in the past year, in this real estate market?
by r_kav- 3 weeks ago
Why are you selling? That is very important in helping us give you the correct answer. Helen, EA in PA
by Helen, EA in PA- 3 weeks ago