if a buy a home of greater value than my own do I get taxed on the capital gain of my current home?
358266
If it's your main residence and you live in the UK no. If it's not your main residence you pay capital gains tax. You have an allowance for capital gains for the year 2006 to 2007 of £8,800 so you pay tax on a gain over that. you should also adjust for the effects of inflation - check the finance pages on TV teletext - there used to be a chart for that on there - not sure if there still is. Outside the UK the tax rules are probably similar - ask your local IRS office. Incidentally, capital gains applies to the sale of a copyright so if you write a magazine feature in the UK and get paid up to £8,800 in this financial year - you won't pay tax on it. Assuming you haven't used your allowance for something else. Capital gains tax does not apply to cars, household furniture, etc. Basically, stuff that goes down in value normally. So you can't offset the loss on a car against a gain. But a gain on a car is tax free (as long as you don't sell them as a business).\n\nThat is one hell of a top answer! 10 points!
355256
At this point, no.\n\nI think your understanding of how it is handled is incorrect.   Assuming you use the house as your personal residence for two of the last five years, you can deduct up to $250k of capital gain if you file anything except MFJ.  If you file MFJ, then you can deduct up to $500k.\n\nIf your basis is $500k, file single, and sell the house for $750k, the gain isn't taxable.  Any amount over $750k would be taxed as long terms capital gains.
685210
There is no tax penalty. You just do not get the tax break for long term capital gains. You will pay taxes on your gain at the your regular tax rate. And don´t forget to includ all you costs in the propery, not just what you paid for it. Improvements are included in the costs.
246716
yes they would.  the value of your new home would be taxed accordingly.  a rebuild is taxed higher, leave a wall up and its only a remodel, taxed lower.  But to be safe, check with the city.
742020
I think the answer is no, because your tax relief on the outstanding mortgage is greater than the interest paid.
1097884
You will pay capital gain tax if you do not roll it over in accordance with the rules governing section 1031 exchanges.  If you buy another property and do it in accordance with this section of the tax code, you will not have to pay the tax.  Look up the rules governing this type of exchange.  Basically, if you put the funds in the hands of a "qualified intermediary" and buy similar investment property, you will not have to pay any tax as long as you do so within the time periods set forth in this section.
121716
You will pay capital gains tax on the gain.\n\nYou first calculate how much you will sell it for minus your tax basis. The tax basis is what you bought it for minus how much you have depriciated it over the years. So if you bought it for $100k and depretiated $15000 over some number of years, then your basis is $85k. If you sell it for $150k then you pay capital gains on the difference of $65k.\n\nYou tax braket determines how much you will ultimately pay. You will have to ask a CPA for how to minimize them. You might be able to do an installment sale to save a little money. That way you only pay what you get each year, you can split it into 2 years if you sell some in december and the rest in jan, or do it over several years. This will possibly keep you in a lower bracket each year.
647864
First of all, it depends on when you inherited it and when you are selling it.\n\nYour "basis" in the property is what it was worth at the time of the death of the person you inherited it from.\n\nIf that was a while ago, the property may have increased in value.  If it was recently, or in an area not experiencing increased value since you inherited, it may be at or near the same value as your "basis" at the time of their death.\n\nThe difference between your "basis" and the current sales price of the property is called the "capital gain" and it is all that you will be taxed on.\n\nEXAMPLES  \n\nIf value @ death was $35,000.00 and you are selling for $35,000.00 - NO TAX (no gain because the basis is as same as the sales price)\n\nIf value @ death was $25,000.00 and you are selling for $35,000.00 - $10,000 Taxable Capital Gain\n\nAs for the tax rates, that is where my expertise pretty much ends.\n\nThere are Long Term Capital Gains and Short Term Capital Gains, and I do not know the length of time for each, nor whether or not there is a difference because the property was inherited and not purchased.  They are taxed at different rates, and those rates have nothing to do with your income level or any other particulars other than the time the capital asset (the property) was held by you. \n\nFor this you will need to speak to an accountant or tax advisor, but I hope you have a better understanding now of what questions to ask to get a complete answer from them.\n\nGood luck and take care.
1120802
If you sell your home in less than two years from date of purchase, you pay a 15% short term capitol gain.\n\nFrom your gross profit, you can deduct all costs related to the sale.\n\nI am with Realty Executives in Phoenix. If you want to contact me I will show you how yo maximize your profits and reduce your tax bill.
189696
If you buy and then sell a house without living in it for 2 of the past 5 years as your primary residence, you will have to pay tax on any capital gains from the sale of the house. If you live in the house for 2 years, the first $250k of gains is tax-free ($500k if you are married)...
817565
Yes, they are.  So are a lot of other things.  Basically, your "gain" is your selling price, minus your purchase price minus upgrades and improvements, minus purchase fees, minus selling fees...basically minus anything that you weren't able to claim against your taxes like mortgage interest and RE taxes.\n\nBut, please, don't take my word for it.  Everything you ever wanted to know about selling your house is at the IRS link attached.\n\nCongrats big time on having such a nice gain!
936701
The tax rate on long term capital gains other than listed securities or units is 20%. Thus , in your case , it will be 20% .\n          \nExplanation ot Section 112 of the I T Act makes it clear that ONLY securities or units have the benefit of option regarding indexation i.e 10% on LTCG without indexation or 20% with indexation.\n\nPlease read the Explanation to Section 112\n"Provided that where the tax payable in respect of any income arising from the transfer of a long-term capital asset, being listed securities or unit or zero coupon bond, exceeds ten per cent of the amount of capital gains before giving effect to the provisions of the second proviso to section 48, then, such excess shall be ignored for the purpose of computing the tax payable by the assessee."\n       As far as saving on LTCG is concerned , you can take the benefit of Section 54EC by investing whole of LTCG in bonds issued by   either  by the National Bank for Agriculture and Rural Development  or\n\nNational Highways Authority of India Rural  or Electrification Corporation Limited,or\nNational Housing Bank,or\nSmall Industries Development Bank of India ,\n\nwithin SIX months from the date of transfer .\n\nYou can also take the benefit of Section 54F of the I TAct for saving tax on long term capital gain tax by investing the Sale Value of the long term capital asset in any residential house  within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house .\n\nRemember this benefit is not available to you in following cases\n i) You own more than one residential house, other than the new asset, on the date of transfer of the original asset; or\n\n(ii) You purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or\n\n(iii) You constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset; and
826088
From a real estate tax perspective, the applicable tax rate will be on assessed value which may means that taxes could potentially go up. As a home owner, you will be able to expense the interest expense on the loan in your tax returns while as a renter, you cannot expense the rent.
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...
1052219
The tax valuation of a home, the value that the state gives you in order to decide how much you will pay in property taxes, often is inaccurate.  This value may be well below the real value of the home, so you shouldn't pay much attention to it.\n\nThe only problem would be if the state were valuing your property at more than it's really worth and taxing you based on that.
456285
The only way is to EXCHANGE them for other income property, called a SECTION 1031 TAX-DEFERRED EXCHANGE.  There are rules and time limits, and you cannot take out any cash without paying taxes on it.  If you cash out and just sell the properties, there is nothing to help offset or eliminate the capital gains tax at both the federal and state levels (if your state has income tax).  For more information, you can go look at the Federation of Exchange Accommodators website www.1031.org.
169148
With a few exceptions, a house is re-assessed for tax purposes every time it is sold.  There are a lot of reasons for this, but the primary one, as always with taxes, is that the county can get away with it!  More realistically, since the value of the property probably went up (that is, you are paying more than the people you are buying it from paid when they bought it), then the taxes are going to go up.  If it were not so, eventually property taxes would cease to be a significant source of revenue for the county, because their expenses and other taxes would go up while property taxes did not.  Taxes also go up when a higher percentage is assessed by the county, but that will still normally be a much less significant increase than the reassessment.  That is because all home-owning taxpayers get hit with that, whereas the reassessment only hits a few at a time.  Votes, you know!