QUESTION
Do I have to pay capital gains taxes if my new house costs less than my old home sold for?
Asked on Dec 23rd, 2012 on Taxation - Oregon
More details to this question:
FYI, I am a senior citizen and the amount in Question is $23,000.
7 ANSWERS
You have not provided enough facts to determine if any capital gains taxes are due. It does not depend on the cost of your new home compared to your old home. It depends on how much of a gain you made on the sale of your old home, how long you lived in it and whether you were married or single at the date of the sale.
Answered on Dec 30th, 2012 at 6:06 AM
Michael Sterner
No, there is a capital gains exclusion for your primary residence. You are well below the exclusion limit.
Answered on Dec 30th, 2012 at 6:06 AM
Taxation Law Attorney serving Glendale, CA
at
Irsfeld, Irsfeld & Younger LLP
Update Your Profile
Cost of the new house does not matter. If you lived in your old home for at least two years, then you do not have to pay tax on up to $250,000 of gain. Excess gain over that is capital gain.
Answered on Dec 30th, 2012 at 6:06 AM
Very generally speaking, subject to all kinds of limitations that might completely change the answer, there will be no taxable gain on the sale of your residence, provided the gain is less than $250,000.
Answered on Dec 27th, 2012 at 11:00 PM
Tax Attorney serving Naples, FL
at
Henderson, Franklin, Starnes & Holt, P.A.
Update Your Profile
No, the gains are exempt from tax as long as you lived in the house for 2 out of the last five years. IRC Section 121.
Answered on Dec 27th, 2012 at 10:00 PM
Probate Attorney serving St. Louis, MO
at
Edward L. Armstrong, P.C.
Update Your Profile
You shouldn't have to pay capital gains tax on the first $250,000 of gain (if you are single) or $500K if you are married. Provided you haven't sold a home in the last two years. This may change very soon if the Obama administration doesn't prevent some of the terrible results its lack of attention to the economy has caused.
Answered on Dec 27th, 2012 at 9:59 PM
Tax Attorney serving Portland, OR
at
Bullivant Houser Bailey PC
Update Your Profile
If you owned and lived in the sold house for at least two of the five years preceding the sale, you can exclude up to $250,000 ($500,000 if married) of gain from your income-regardless of whether you purchase a new house.
Answered on Dec 27th, 2012 at 9:56 PM