Capital gains on a home sale?

[WetWillie]

Anyone tell me if there taxed on the entire home amount or the profit??
What are the percentage rates I can expect to pay??
Anyone know a way out of paying them?? Is it one year or two. Realtor told me that she heard it may have changed to 1 yr?

[Scream]

Capital gains is the difference between what you bought it for (basis) and what you sold it for...That's the gain...On homes there is a one time exclusion, can't remember how much, but i'd think that most folks want to save that till later in life...

[mike37]

if you have lived there more than two years you don't pay any
if its a rental its on the profit only

[WetWillie]

I made a $100k in profit in 14 months.. What would it be?
Can I do a 1031 and defer it till later? Just exploring my options!

[bchbum]

I think you need to be over55 for it to happen . $250,000 for each , husband & wife

[Kilrtoy]

2 years.......

[Scream]

I missed that class in College...lol You should talk to a tax pro, before you get hosed with taxes...

[mike37]

I made a $100k in profit in 14 months.. What would it be?
Can I do a 1031 and defer it till later? Just exploring my options!
yes but there are limits

[rvrhlic]

If it is rental property, you can do a 1031 tax deffered exchange however, yo must identify (be in escrow) the new more expensive property within 90 days of close of excrow.
If it is you primary residence, you can take 250k for single or 500k married tax free. You can take the tax free money every 2 years. The code reads you must have lived in the house 2 years out of the last 5.
I think capital gains is like 30%. I am not sure though, I think BUsh lowered them.

[Sanger Pete]

Capital Gain equals net sales price (sales price less costs) minus purchase price minus any capital improvements, (plus accrued depreciation if investment property)
If the house was your personal residence, you can either pay the tax of 15% of the capital gain, or defer the gain by purchasing another home of greater value--I think within 2 years.
If the house was an investment property, and the escrow has already closed (and you received your "profits"), you'll have to pay the tax. If the escrow hasn't closed, you can still set up a delayed 1031 exchange to defer the gain into a suitable replacement investment property, subject to specific IRS rules.

[rvrhlic]

If the house was your personal residence, you can either pay the tax of 15% of the capital gain, or defer the gain by purchasing another home of greater value--I think within 2 years.
This is not correct, there is NO LONGER a stipulation syaing yo must buy up, that was removed from the tax code in 1997.

[572Daytona]

http://www.irs.gov/faqs/faq-kw113.html

[6 Dollar Boat]

If it is you primary residence, you can take 250k for single or 500k married tax free. You can take the tax free money every 2 years. The code reads you must have lived in the house 2 years out of the last 5.
This is correct, but Bill, you are a Baller just call your CPA. I wouldn't take tax advise from HB.

[Essex502]

Don't forget the state you live in will also tax that profit from the sale. California taxes it at "ordinary income" rates - no "capital gains" rate. That means the profit is added onto your gross wages and salary total for the year. If you kept good records of the capital improvements you made to the house such as hardscape, patios, patio covers, pool, etc...those reduce the profit dollar for dollar.
The was some talk about pro-rating the $250/500K exclusion for primaray residence for 2 years so that you could take, say, 75% of the exclusion if you lived in the house for 1-1/2 years for example. I don't remember what became of that.

[BIGTYME]

You need to live in the house for 2 out of the last 5 years to avoid capital gains. If you live in your home for 2 out of the last 5 years you can profit up to $500,000 per couple and $250,000 for a single person.1031 exchange is only for non-owner occupied properties.
Let me know if you want a second opinion on your home. I am a top REALTOR in East County and have sold some stuff in Scripps Ranch.
www.SELLwithSCOTT.com

[FREIND OF AA AND TA]

Call me dude!! I can't believe you even started this thread

[Mandelon]

SangerPete,
I just sold a lot for 100 g's, got $40,000 up front and am carrying $60,000 for 5 years. Can I still do a 1031 on the balance since the escrow closed more than 90 days ago? My accountant says no but iffin he's wrong- I'm goin to kill him!
Rio
You are screwed.

[ROZ]

Mr. Willie,
A baller like you can nut up the 250-300pr hour your CPA will charge you to correctly answer the question.

[bigq]

Don't forget the state you live in will also tax that profit from the sale. California taxes it at "ordinary income" rates - no "capital gains" rate. That means the profit is added onto your gross wages and salary total for the year. If you kept good records of the capital improvements you made to the house such as hardscape, patios, patio covers, pool, etc...those reduce the profit dollar for dollar.
The was some talk about pro-rating the $250/500K exclusion for primaray residence for 2 years so that you could take, say, 75% of the exclusion if you lived in the house for 1-1/2 years for example. I don't remember what became of that.
Most of thet is for a hardship sale. The IRS has guidelines for a percentage you can take depending on the situation. The only reason i know is because I used it and had to sell from a hardship, but they still tax you for the remaining period...occupied for 75% of 2 years then you pay on 25% of gains. Otherwise with no hardship it is 100% of the gain.

[WetWillie]

I pay a CPA $1000 a month to represent my company but that bastard is always on vacation! :eek: I guess I thought there were alot of smart peoples on this board that one might know the answer... I will call him when he gets home!!
Mike you sell in San Diego?? :)