Is there capital gains taxes on the sale price of a house?

Answer by  Meerkat (7)

Under current Federal tax laws (USA), there would be capital gains tax due on the sale of a home if it was owned for more than one year, and if there was a profit. Profit would be determined by adding together the purchase price and all improvements (but not repairs), and subtracting from the sale price.

Answer by  mem4dr (1378)

It depends. If your capital gains are less than $250,000 (or $500,000 if you are married), then you will pay no taxes on it.

Answer by  patti (29325)

Most people sell a home and immediately invest the proceeds in another home. IRS law determines the length of time within which this reinvestment must take place. Proceeds that are not reinvested in another home, or proceeds of the sale of real estate in general, may be subject to other laws. Consult a tax professional to be sure.

Answer by  drJ (841)

If it's your primary residence and you use the proceeds to purchase another primary residence, $250K of profit is excluded from capital gains taxes ($500K for a married couple).

Answer by  connie30 (22)

I'm not sure of the answer to this but my opinion would be yes. I'm sure there is. You know someone somewhere has their hand out to get your hard earned money any way they can. They tax everything so i know they're gaining off a house to that is being sold.

Answer by  chespa (82)

No if you own one house and you deciede to sell it, you buy another that costs less than the one you sold, you will be liable for C.G. taxes

Answer by  cmkekbif (778)

Only if you make a profit of 250k or higher. That means 250k after the payoff of any mortgages or liens against the property as well as closing expenses or commissions.

Answer by  Gus28 (683)

If after the $250,000 (or $500,000 2 owners) exclusion is applied, there remains a gain from the fair market value (if inherited) or original purchase price, capital gains taxes apply.