What is the tax impact when you sell your home?

Answer by  shanna34 (34)

It really depends if you sell your home for more then you paid for it then you will need to claim that as income on your income taxes this will be taxed right along with your other income. However if you sell your home for less then what you paid for it then you can claim a loss.

Answer by  tamarawilhite (17883)

The profit above the purchase price of a second home is taxable income. Up to 250K for a single individual and 500K for a married couple of profit above purchase price of a home is tax exempt.

Answer by  tamarawilhite (17883)

If it is your primary residence, the first 250,000 for a single person and 500,000 for a married couple of PROFIT are tax free. Profit is sales price minus what you paid for the home.

Answer by  tamarawilhite (17883)

If you sell at a loss or break even, there is no tax impact. You only owe a capital gains tax if the sale price is more than $250,000 over the purchase price - if it is your primary residence.

Answer by  jbrowning8 (46)

Profits are taxed on Schedule D. Some of the important exceptions are if you lived in the house as your main home for 2 years over the past five and the sales price neted you a profit of less than $250,000 or $500,000, if a married couple is filing jointly, no tax is due.

Answer by  tamarawilhite (17883)

If it is your primary residence, only the amount of the profit on the sale over $250,000 is taxed. If you sell it for less than $250,000 profit, you keep all of those gains tax free. If you sell the house in a short sale, the debt forgiven may be taxed as income.

Answer by  Eveleene (3)

Well, I think rental property owners may defer some capital gains tax if they purchase another rental property and qualify for a 1031 exchange, but not if they buy a personal residence.