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P. Simmons
P. Simmons, Attorney
Category: General
Satisfied Customers: 27150
Experience:  45 years old, retired Marine Officer, current attorney
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I am selling my house and the difference between what I bought

Customer Question

I am selling my house and the difference between what I bought it for and what i'm selling now is $90,000.
I am head of household with two children.
I lived in the house for 6 years.
I have spend about $30,000 improvement before selling the house.
I have no other income.
how much taxes do I have to pay?
Can I deduct the 30k improvement since it was not a income property and it was my residence?
Submitted: 1 year ago.
Category: General
Expert:  P. Simmons replied 1 year ago.
Thanks for the chance to help. I am an attorney with over 12 years experience. Hopefully I can help you with your legal question.

Normally you would not pay taxes since you lived in the home prior to selling.

BUT if you took money from the stimulus, the program was called the "first time homebuyer tax credit) you could be required to pay that money back.

The credit was up to $8K

Do you recall if you claimed this credit (if you purchased 6 years ago, it may be you did not yet qualify...the program started in 2008)?

Customer: replied 1 year ago.


I did not take the credit. but I will have about $90,000 gain on the property. I should not have to pay taxes on that?

Expert:  P. Simmons replied 1 year ago.
No...not if you live in the home or have lived in it for 2 of the last 5 years. There is an IRS exemption.

When you sell your primary residence, you can make up to $250,000 in profit if you're a single owner, twice that if you're married, and not owe any capital gains taxes.

SO $90K is not a problem


P. Simmons, Attorney
Category: General
Satisfied Customers: 27150
Experience: 45 years old, retired Marine Officer, current attorney
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P. Simmons
P. Simmons
Attorney
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45 years old, retired Marine Officer, current attorney