we sold our house last year for and made a profit of $32000, how does this affect our tax margin?
113083
If you keep the money it's capitol gains.  If you buy another house or put it into certain accounts that give you a break it's not capitol gains anymore.  You'll need an accountant though because lots of this depends on your income and everything else involved.
1053387
if the intention was to make a profit then yes\n\nbut if you buy and sell home and that is how you make your living then yes (it does not matter if you live in them or how long you live in them)\n\nthere is an argument that if you are making a profit buying a house that you must consider the house inventory and then ou would pay tax on the full amount not just 50% (like with capital gains)\n\ngo to an accountant (CMA, CA, CGA); they will be able to look at your specific situation and help you
577241
Your pretty much correct.\n\nHere is a link to my 1031 exchange site that I'm creating:\nhttp://www.nnnstore.com soon to be http://www.1031store.com\n\nYou will find good general information about 1031 exchanges, especially on the first page.\n\nHere is a link to my capital gains calculator:\nhttp://www.nnnstore.com/1031_capital_gains_calculator.php soon to be:\nhttp://www.1031store.com/1031_capital_gains_calculator.php\n\nThis will help you figure out your total capital gain due.  NH is a no capital gains state.  I calculate that you will owe $15,300 in capital gains taxes.\n\nThis figure could change if you depreciated the property or add in capital improvements.\n\nTo defer all capital gains taxes, 1031 exchanges are the way to go.  You will need to replace all debt & equity of your sale by purchasing another investment property.\n\nYou may do a partial 1031 exchange, reinvesting some of the proceeds and taking the gain on the rest(known as 'boot').\n\nA good title company should be able to help explain 1031 exchanges further, and also act as your accomodator for the exchange.
80565
The amount of the mortgage(s) does not affect the capital gain.  Gain is determined by the difference between the net sales price and your basis in the house.  In most cases in which you have lived in the house for two of the past five years, the gain is not taxable.
27709
We recently purchased a new house and wanted to sell, and reinvest the money into a new one... we called the IRS directly to find out if we'd be charged a capital gains tax, and the answer was yes.  If you sell your primary residence within 2 years, you will be charged a capital gains tax.  However, there could be good news...\n\nLast year if you made 49,5k or less you were only charged a 5% capital gains tax.  If you made more than that, you would be charged 15%.  To help maybe smooth the hit over on your $35k taxes...\n\nYou subtract legal, agent, long-term house upgrades from that number and only claim that as profit from the sale.  So if you made 35k from the sale, but your agent's fees were 10k, legal were 5k and house improvements to the old house were 1k, you would only claim 19k.  \n\nPlease, please please double check this with the IRS and/or your accountant.\n\nOh - and if you moved because you either lost your job, or relocated to a different state (and there are some other things), you could be exempt altogether from the tax.\n\nGood luck!!
1120438
Great point TaxGuru... great answer too.\n\nI'm referring to the fact that you might have depreciated the property and refinanced the property (taking cash out) over the years.  You might have only paid off your liens, but still received funds in excess of your adjusted basis.\n\nCalculating your real estate gain takes into account a number of factors.  Your original purchase price could have easily been much lower than your present liens.  Although you wouldn't have had to pay gains tax when taking cash out, you would have to account at the time of sale/title transfer.\n\nI've been working on my 1031 exchange real estate site, and should complete the site by July 4th.  Many of the functions are up and running.. you can calculate your capital gain here:\nhttp://www.1031store.com/resources/1031_capital_gains_calculator.php\n\nAlso, the site will have a place where you can search for professionals who will be able to help you... notably accountants(1031 exchanges are about deferring capital gains).\nhttp://www.1031store.com/experts/1031_exchange_experts.php\n\nI hope that you do not owe anything because this sounds like a tough situation.  Your foreclosure expenses probably ate up an awful lot of your potential gain.  You might want to also contact a real estate attorney to make sure that you are getting a fair shake.\n\nHope that this helps...
1135699
That depends.  If it was your principal residence, and if you lived in it for 2 out of the last 5 years immediately prior to the sale, then you may exclude up to $250,000 ($500,000 if married filing jointly) in gain from federal taxes.  Excess gains are taxed as capital gains, as is the entire gain if you don't meet the ownership, residency and/or occupancy conditions.\n\nCA law may vary on that.  Consult a tax advisor in CA for full details.
710114
I'm thinking you are reading it incorrectly.  The gain from the sale of the real estate goes on NJ Schedule B as does the loss from the stocks.  These net together to give you a final gain/loss on line 4 of Schedule B.  If it is a loss, it is ignored.  If it is a gain, it transfers to line 18 on your NJ-1040 (or whatever line it is for 2006).  When you say they are in different categories, what do you mean?\n\nOK, I read in the instructions where it said, "You may deduct Federal passive losses in full in the year incurred against any gain within the same category of income, but only in the year that it occurred."  I believe that does NOT apply to you.  Had the sale of stock been from a Partnership instead, then it would be from a different category and they would not nullify each other.  But in your situation, since both events go on Schedule B, they do "balance out".  If the result is negative, you will not be able to subtract it from your other income.  If the net result is positive, you must include it on 1040-NJ line 18.
338167
I am not aware of a threshold. If you make a $1 in profit on a capital sale it it taxable.
283155
If you make a profit on a house that you own over such a short period of time, then that profit is income and it must be reported as such.  If you hold the property over a longer period of time, the profit becomes "capital gaines" and is taxed differently.\n\nThere are a number of ways, however, to "shelter" your income from tax liability.  If this is something you plan to do on a regular basis, then I would suggest that you consult with an accountant about handling your house purchases and sales as a business venture.
1001264
If you held them for over a year, the tax rate is 15% (10% if your in the lower tax brackets)  If you held them for less than a year, the gains will be taxed at your effective tax rate.  If you have a loss, you can deduct up to 3000 per year and carry over the remaining losses to offset future gains.
512427
If it was your primary residence for a couple of years, you get the first 250k profit (500k if married) for free on capital gains.  With mortgages, you can only deduct interest payments, and rolling over your property to something of higher value only works for properties that you don't live in personally.
521478
Unfortunately, you can only roll it over into another investment property (Like-kind exchange)  Applying it to your residence will not work.  You have sixty days (before or after the closing) to identify another property and 180 days to close on it.  If you held the property for investment (say yes) and held if for over 12 months, you will pay tax on it at the lower capital gains rates. If you held it for less than 12 months, it is considered ordinary income and is taxed at your regular rate.  If it is less than a year, see if the buyer will wait until the year is up.  Give them soem money back at closing to compensate them for waiting.  It could be worth your while.  To see what the tax might be, use your tax software to estimate what your tax would be.  Sorry to hear about the medical problem, I hope everything works out.  Also, ANY profit is a good profit!!!!!
797301
if you have lived in the house for 2 of the last 5 years the tax on anything less than $250,000 profit is ZERO. ( $500,000 for a couple)\nif your gain is more than that or you do not qualify, then they charge about 5% on the gain (profit) for poor people and 10% or 15% for others.\nif you have not lived in the house two years, but maybe 6 mo or 1 year, you may qualify for the maximum exclusion rule if there is a good reason for selling and moving. ask tax man to explain it to you.\n maybe they will give you a percentage of the $250,000  exemption pro-rated, say $125,000 for 1 year etc.\n\n if the house is a rental, you can do a 1031 and use the money from it to buy another house. ( then have zero tax to pay now) then after the sale. you can get a loan on the new house to pull out your equity.( not the other way around) check with tax guy for advice. the tax is seferred until you sell without rebuying. or it is waived if you die and pass the house on. that is the best way.
569800
Section 1250 requires that gain on the sale of real property be treated as ordinary income to the extent of the depreciation claimed in excess of straight line. Any gain in excess of this ordinary income is section 1231 gain.\n\nGood question. When I was in similar situation in 1997, tax rate was 25 percent. A tax adviser would certainly be able to answer this for you.\n\nHope this helps!\nNewarview
597227
did you use the interest and taxes as deductions in the past (you should not have technically)\n\non non personal property (you did not live there) that is not (has not) generated income the interest and taxes are added to the base cost of the property (this will help reduce your gain; it is not a capital gain though)\n\na property that is purchased to be sold and not rented is treated the same way as inventory would be treated (you pay income tax, it is not a capital gain)\n\nif you have a loss it is applied against your income to reduce your taxable income\n\n\n\nTaxation – Lesson 7\nCMA Canada - July 2004 Page 31\nBusiness income versus capital gain\nIn most cases, a business is readily identifiable by the nature of its activities. For example, the manufacture and development of computer chips for resale would constitute\na business. Sometimes, however, it is difficult to distinguish whether income from a transaction is business in nature or capital gain. The sale of land can be either a capital transaction or a business income transaction depending on the facts of the circumstances.\nThe distinction is important because, as you will see, business income is fully taxed whereas only one-half of capital gains are taxed. Moreover, business losses can be\napplied against all other sources of income (e.g. capital gains or employment income), whereas capital losses are only available for offset against capital gains. Business income\nis taxed less favorably while business losses are treated more preferentially. The full amount of business income is taxed in the year that it is earned while only one half of\ncapital gains are taxable, in the year in which the gain is realized. Business losses, unlike that of capital losses, can be used to offset income from all other sources.\nThe chief factor in distinguishing a business activity from a capital gain transaction is the intended use of the property on acquisition. The principal reason for the purchase and the subsequent use of the property will determine the type of income of the profit (loss)\ngenerated upon sale. If the property was acquired for the purpose of resale, then its disposition is likely business income. i.e. if the property purchased is considered\ninventory, then all profits triggered upon sale would be considered business income.\nConversely, property acquired for the purpose of providing the owner a long-term benefit is likely capital property; its disposition creates a capital gain or loss, i.e. any gains generated upon the sale of capital assets used in the course of running a business are deemed to be capital gains.
594827
It won't mean much for me, except maybe lower property taxes.  As long as you're not planning on selling, it's kind of like a drop in the stock market.  The price doesn't matter until you sell.\n\nTami T - I would be concerned about a 15% drop, unless you had a big down payment.  You could end up upside-down on your mortgage and if you HAD to sell (lay-off, relocation), you would end up still owing the bank for a house you don't own anymore.  And I'm sure they'll want that at closing.