When selling a home, do you have to reinvest the money you make from the home into another property?
969946
If you sold your main home, you may be able to exclude up to $250,000 of gain ($500,000 for married taxpayers filing jointly) from your federal tax return. This exclusion is allowed each time that you sell your main home, but generally no more frequently than once every two years.\n\nTo qualify for this exclusion of gain, you must meet ownership and use tests.\n\n    *Ownership Test: During the 5-year period ending on the date of the sale, you must have owned the home for at least 2 years.\n\n    *Use Test: During the 5-year period ending on the date of the sale, you must have lived in the home as your main home at least 2 years.
792655
There has actually been a fair amount of scientific research into this question, and there are some reasonably reliable answers to it.  A number of studies I have seen agree that major home improvements will not repay themselves when it comes time to sell.  Improvements that will repay themselves are mostly cosmetic:  a complete paint job inside and out; new carpeting; landscaping; repairing anything that is broken or obviously worn.  These improvements will pay off with a profit and are recommended.  Upgrading to modern windows also will pay off at resale.  All other major upgrades will probably not pay for themselves in full.  However, kitchen and bath remodelings have been shown to repay almost in full at resale, and if they will bring you enjoyment in the meantime, they are worth considering.  For more details, check out the two articles in the source box, below.
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!
482743
No, if it is your principal residence, and you sell within 2 years.  However, if this is an investment property, and you are using that money to buy another investment property.  The transaction could be set up as Sec. 1031 exchange, which will result in a tax deferral.
131455
Under IRS 1031 rules you may sell income property and reinvest entire amount in income property and NOT be subject to any capital gains tax. This does not apply if your are selling your residence (where you live), however in this example  single persons gets up to a $250,000 exemption before taxes apply and a married couple gets $500,000.  There are many IRS 1031 rules that must be strictly complied with to avoid tax on an investment sale and purchase .  Look for a 1031 Qualified Intermediary in your local phone book or on the Web.
211390
oh yes\nbut you can relist and if it sells on the second listing you get reimbursed for the second listing fee!
878425
You only pay capital gains on PROFIT, not gross proceeds. If you come out at 0, you dont have to worry about capital gains. \n\nI bought house for $152, sold it at $167, and only paid capital gains on about $5K becuase that was all the profit I made on the deal. \n\nAs long as you keep your paperwork to show that the cash you're getting back is your down payment and not profit (hang onto your original closing statement) then the 1031 exchange is a moot point.
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.
847026
shouldnt be any so long as you effectively live in one of them until of them are sold.  if you are liable to cgt then you can claim the costs of conversion as well as your original purchase price as the purchase price
746229
I'm assuming that you are selling a property that you have been depreciating. I don't know if you are a real estate professional who has been writing off your losses as you go or a passive investor, but I will assume a passive investor.\nYou Willl compute your gain on the sale of the property under normal rules. You gain will then be taxed at 25% to the extent of depreciation taken on the property that you sold. Any gain above this depreciation amount wil be taxed at the 15% capital gains tax rate.\nIn addition this gain will be passive income that will allow you to use your passive losses to the extent of the passive gain which is deductible in full on your return as an ordinary loss.
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.
709063
Assuming you sell the stock for a gain and you hold the stock in your own name (not an IRA, 401k, etc.), yes you do.  You can't do a like kind exchange as you can with assets like real property.
871369
That's basically how it works.  You sell a home for a certain amount of money and then you pay off the mortgage, so whatever's left is yours.  Now, that doesn't necessarily mean that paying off a house is the best investment you can make.  Nothing wrong with it, but if you're looking for maximum bang for your buck you may be better off making the monthly payments on your mortgage and investing your extra money elsewhere.  No way to be sure which is the better investment without checking interest rates and comparing.
1032070
Depends, if you use your profits to buy another house within, I believe, 2 years, no.  Check the IRS website for time limit.\n\nIf you don't purchase another house, then yes.
201789
If the house was already in the children's names, then there was no inheritance.  Therefore it would be considered a sale of real estate.  I believe the basis of the house would have been the basis on the date of the transfer, not the appraised value.  Don't forget to add the cost of any improvements to the original basis.\n\nFor more information go to the IRS website and download Publication 523 - Selling Your Home.  If that doesn't help, call the IRS directly.
125171
Yes.\n\nYour modified adjusted gross income is just adjusted gross income with some things added back in. And Capital gains are part of adjusted gross income.\n\nKeep in mind that real estate has special rules and although - to you capital gains are one number, the rules for figuring it out have little to do with reality. \n\nIf it was a rental property then you have depreciation to consider also if you used part of your home as a home office deduction, if you lived there you get a certain amount before you have to start counting it, if you didn't own it for long enough you will get screwed. If you do a 1031 exchange you can put off the whole thing until later. If you die the taxes can be avoided all together for those that inherit it if done right.
945726
Yeah unless the money Is delt under the table. Youll have to pay a tax on it, the ammount really depends on how much youll be reiciving