I've owned my current home for 9 years and would like to move. I have 450k of appreciation in equity since buying the home. I plan on using this to buy another house but will I have to be taxed capital gains on it? I'm single so I guess the exception is 250k, leaving me with taxes on 200k (or about 40k)? That is really gonna put a dent in my purchasing power for the next home.
Looking to buy a house and sell mine. Need to know about tax liability.
byu/BizzyHaze inRealEstate
Posted by BizzyHaze
4 Comments
Your math looks roughly correct. Your can double the exemption to $500k if you’re married.
Have you been tracking home improvement costs? R u in California?
250k exemption. 450k selling price minus all costs including original purchase price, realtor fees, any renovation costs, closing costs, etc. If 450k minus all costs is more than 250k you will be taxed on difference.
Long term gains usually around 15% on profits over $250k.
Could “ rent” it out call it an investment property then do a 1031 into another investment property that doesn’t even up working out as an investment property…. Not sure if you can ever convert a 1031 to a personal residence if you were to get married down the road….