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February 19, 2008
Taxes on resale
Forgive me for being naive. We think we will make about 80K profit on the sale of our condo. We plan to use the money to buy another property, but it may not be immediately, but within a few months? What taxes if any are we obligated to pay?
Comments
If you held it for at least two years as a primary residence up to $250K gain ($500K for mc) is excluded from tax.
Posted by: guest at February 19, 2008 4:27 PM
You deduct the price paid for the condo and also any renovation work such as kitchen, bathroom etc., from the sale price.
Don't forget to keep all receipts for renovation work.
Your cpa might want verification.
There is a $250,000 deduction if you are single.
$500,000 for a legally married couple.
Who knows you might not have to pay taxes on anything.
Just make sure the math is correct.
Posted by: Ysabelle at February 19, 2008 4:40 PM
That two years as primary residence has to have been within the past five years.
Posted by: guest at February 19, 2008 6:04 PM
People here are speaking of federal tax and are accurate but the taxes that really hurt are the city and state tax and the mortgage tax . When we sold our co_op and bought our house we were shocked how quickly our reno money evaporated. Be sure to speak to your mortgage broker and attorney but note that their projections may be "off"
Posted by: HomeSweetstuy at February 19, 2008 7:07 PM
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