how much capital gains tax will i pay when i sell my house if i dont buy another house with the money?
490134
The current tax law says you (and your spouse, if married, filing jointly) can take capital gains of up to $250,000 each without paying capital gains tax AS LONG AS you have a). lived in the house a total of 24 months during the last five years (summers, winters, whatever) and b). it is your primary residence (you should have your driver's license at this address).  You will pay capital gains tax on anything over that amount.\n\nThere is no lifetime limit on how many times you can take this exemption, however, you can't take it more than once every two years.
627801
No, you can't avoid capital gains tax. Unless it is in an IRA if you sell it you pay taxes. That may not be that bad. If it is a long term gain bite the bullet and pay the 15%. The 15% maximum capital gains tax is a big windfall to someone in your situation. No one likes to pay taxes but in your case it is pay me a little now or a lot later.\n\nIf it isn't a long term gain yet then certainly wait until it is.
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.
263292
You do not pay taxes when you inherited the land. If and when you sell the land that's when you pay taxes. If the Land is worth 20,000 now and in 5 yrs you sell for 25,000 you only pay taxes on the 5,000. Hope this helps
81787
We did something similar but transferred it to a Family Trust.\n\nHowever, transferring the deed to you is entirely possible.  The only thing is that when you sell this property, your capital gains will be based on your initial cost of $0.  Therefore, you will pay higher Capital Gains tax later on. \n\nThis should of course be offset by you getting this property for free, and really depends on your tax bracket.\n\nIs there a mortgage on this property?  If so, you can still transfer the deed to you.
1167263
Here's the catch. When you sell a home, the transaction never goes beyond the county level. The only records the IRS will ever see are those provided by the bank, and what YOU tell them on your tax return. There is no space on the tax return that requires you to document how much PROFIT you made. You can buy a home for $100k, and sell lit 6 months later for $150k, but who's to say you didn't put $45k into repairs and remodeling, costs of selling, etc.? That means that you only have to declare $5k profit, IF you don't put it into another house. Don't volunteer any information, wait until they ask for it. They have to prove that you owe them money, you don't have to prove that you don't.
743449
If this is your primary residence there is no capital gains tax. The purchasor will only pay stamp duty at 3% (£10,800).\nIf this is not your promary residence you will also pay capital gains tax. But to calculate that you will need to give the price you bought the house for and how long you have held it.\nCapital gain will be at gain (£360,000-purchase price) adjsted for taper relief (depends on how long you have held it). \nAlso any improvements you have made can be taken into account in the cost (e.g. extensions).
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
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.
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.
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.
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.
246913
Live in the home for 2 years. You can also sell the home and buy another rental property. Its called a like exchange. Those are the only two Ways that you can get out of paying capital gains. If you don't want to do that make sure you add everything you have ever done to the rental property in the last 8 years to the basis of the house. (landscaping,repairs,trips to check on the property and to sell etc.)
679290
The tax situation you are referring to involves the capital gains tax on your profit (if any). You must live in the home a total of two of the past 5 years to get the exemption. This allows you to not pay tax on the first $125,000 worth of profit on your home.  There are certain exceptions to the 2 year rule, that may allow you to exclude a percentage of your profit in specific cases. \n\nRemember your profit is the difference between the net (after selling costs like real estate commissions and closing costs you pay for your buyer) and your cost basis for the house. Your cost basis is the original purchase price, plus the cost of any improvements to the property.\n\nConsult a tax professional for more specific information.
813670
I am also a seniour citizen.  My investment is in property only.  My strong advise is not to sell the flat unless you are badly in need of money.  The value of properties are going up and up daily.  If you sell now, you cannot buy it again.  Selling property and paying capital gains is all waste.\n\nIf you have to sell your property, and if you happend to pay tax, to avoid paying tax he has to invest the profit in capital gain bonds. If your father has no other income, then you can deduct Rs.1.85 lakhs from the profit. Say indexation profit is 3 lakhs. less 1.85 lakhs rebate to >65 years old people. Your net profit on which you have to pay tax @20% is Rs.1.15 lakhs.)\n\nWhat Mr.Rupin sain in his above answer is partly not correct.  For the purpose of Long Term Capital Gains on Property, you have to go indexation only and no other methos. (The other method of 10% is only for mutual fund units.) Mr.Rupin said two methods.  No two methods. Only one method for property that is indexation and 20% tax.\n\nI have given the below answer to a question about long term capital gains of a property.  Follow this.  This will give you how to calculate the tax.  About 20 years back say during 1985-86 the indexation was 133.  For 2005-06 it is 497. \n \nCost if Indexation is only for the purpose of calculating Long Term Capital Gains. Listed/shares sold in Indian Stock Exchanges are free from payment of Tax, if they are sold after 12 months of purchase. Other properties will be treated as Long Term Cap. Gains if they were sold after 36 months. For this, the indexation cost will apply and the income tax on this income is @20% flat rate. \n\nExample:\nOn 17.9.1982 your have purchased a house plot for Rs.10,000/-. That is in the FY:1982-1983. The Cost of inflation index for that year was 109;\n\nOn 16-11-2005 you have sold the same for Rs.8,00,000. The financial year is 05-06 and the inflation index for that year was 497.\n\nYour actual gain is (8,00,000-10,000) Rs.7,90,000/- \n\nYour actual cost of the house site is Rs.10,000\n\nYour inflation indexation cost is 10,000 x 497/109= Rs.45,596/-\n\nYour inflation indexation gain is Rs.8,00,000-45,596= Rs.7,54,404. \n\nThe tax on it will be Rs.1,50,881+ED2%. \n\nIf you need any personal clariication (free advise), please send me a mail to my mail address neswarareddy@yahoo.com
463475
Depends on whether this is an investment property or your primary home.\n\nPrimary homes allow for a gain of up to 250,000 if you are single, 500,000 if you are married.\n\nIf this is an investment, you will have to pay capital gains if you do not do a 1031 exchange.  There are formulas to calcualting your gain and applicable taxes.\n\nYou can also choose to do a 1031 exchange, and defer capital gains taxes into another investment property.\n\nHere's a link to the capital gains calculator on my site:\nhttp://www.nnnstore.com/1031_capital_gains_calculator.php
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!!!!!