Do real estate agents fees get deducted before any capital gains liability on home sale?
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!
726088
You can deduct state, local, and foreign real estate taxes on ALL real estate you own.\n\nYou can deduct mortgage interest on ANY two homes you own.  You can only deduct mortgage interest on the first $1 million (total) of loans used to buy, build, or improve your home and only on the first $100,000 of other mortgage loans (home-equity).  If you think you may be over these amounts, or if you want to investigate further, I suggest reading the attached publication from the IRS.
521287
Ad valorem taxes are totally separate from cost basis.  Property taxes are deductible on schedule A of the 1040 income tax return, and don't affect cost basis.  From the facts stated, Heather's realized amount cannot be determined, as it would change with realtor fees, HOA assessments, survey costs, appraisal fees, etc.  As for Keith's basis, it would begin with $300,000 dollars, plus anything paid for other closing costs (but not the real property taxes.)
1093205
Not on all capital gains.  There used to be an exemption related to someone selling their house if they were over 55, but that is no longer the case.  Now the exemption is available to most people if you meet the criteria, such as own your house for two years and other items.
463291
Home improvements are NOT tax deductible, ever.  The only time they matter is if you sell your home, and only then if your gain on the sale exceeds the current $250,000 individual/$500,000 married couple gain exemption...in which case the cost of improvements would be added to the original cost basis of your home, and then only the difference between THAT total (LESS the $250K/$500K exemption) and the ultimate sales price you received would be taxed.\n\nThere is talk of the IRS doing away with that $250K/$500K gain exemption...so hang onto your receipts and records...because if that happens, you may need them later to help with taxes when you sell your home.
657333
Generally you can't deduct the expenses related to purchasing a house, except any points paid.  The extra expenses would be added to your basis (the book value of the property cost+expenses-selling costs) of the house.  You should be able to take a loan from your 401(k) without penalty, you just have to make the payments to the 401(k).
539420
Any profit you earn from renting or selling the property will be taxable to you.  If you rent the property, you can deduct depreciation as well as operating expenses from the rental income.  If you resell, your profit will be equal to the selling price minus your cost for the property, including any costs incurred to fix it up; any depreciation allowed will reduce your cost.  \n\nIn addition, you may owe real estate taxes to the state or local government.\n\nConsult a tax preparer or accountant for details.
85232
No.  It is a personal use vacation home.  The good of selling your home is the gain on primary residences are not taxed...the bad is losses are not deductible.
914962
Absolutely not, unless  (A) you are a licensed real estate broker and (B) you have a pre-existing written agreement to do so signed by every estate beneficiary from whose interest the commission would be paid.   As a P.R. you CAN seek additional P.R. fees for extra services to the estate involving sale of real estate that either the beneficiaries expressly consent to in writing or that a court allows on application after notice to the beneficiaries.   Such additional fees must be based on such factors as additional time and  liability over & above the routine duties of a P.R., not on a percentage of the sale price -- which would constitute a commission.
692890
By converting one home to a rental property, you will only lose that tax exemption on the sale of the property ($500 if MFJ or $250 if single).  But the rental property will now get benefits, such as deducting depreciation, repairs, insurance, HOA fees etc that were not deductible before.  The down side is that when you sell this property, you have capital gains issues.  I suggest you consult a tax accountant to learn more about your options,  It will be well worth the fee, beleive me.
1113697
Maybe not, depending on how much you sold it for.  The law changed a few years back - until then, answer would have been yes.\n\nAssuming you owned and lived in the home for at least two years out of the five years before you sold the house, and you didn't exclude gain from another house in the 2 years before the sale, you can exclude up to $250,000 of the gain.  If you're married and file a joint return for the year of the sale, either you or your spouse owned the house for 2 years out of the 5 before the sale, both of you lived in the house for two of the five years before the sale, and neither of you excluded gain from another house within  2 years before the sale of this one, you can exclude $500,000 of the gain.\n\nIt doesn't matter anymore for tax purposes whether you invested the gain in another home.
1084312
that's a great question - I'll be doing that in two years....Obviously, you can't depreciate primary residence....if your rental property becomes your primary for 24 months in a 5 year period, when you sell w/in that 5 yr period, you get the Capital gains exemption and just lose all the rental deductions you "enjoyed" to date.
372532
Overall yes.  Long term capital gains income is taxed at a lower tax rate than ordinary income, so if you have income that qualifies as such, your overall tax liability will be less than if it was all taxed as ordinary income.
828184
It will depend on the price. If it's over couple of millions, then you should expect a lower commission than normal 6%. I am an agent in the San Fernando Valley area in Los Angeles. If you want, we can get together or talk about your property over the telephone. The important things that any Realtor and buyer will want to know is the number  and type (1+1, 2+1, etc) of units in the buiding, gross rental income from apartments, approximate utility expenses and taxes.
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
472389
Yep, u have until the 15th May with a registered tax agent.  U have to have notified the tax office before the 31st October that you intend to use a tax agent though so u don't get any fines.
84579
Standard form 1040, and yes...loss of sale of any asset is deductable.