Real Estate Law
Have Real Estate Law Questions? Ask a Real Estate Lawyer.
Hi and welcome to JA. I am Ray and will be the expert helping you today.Here if the purchase price was 1 million and it sells for 4 million she owes the taxes on 3 million less any exclusions and deductions she can muster.
Here is a one time exemption of $250,000 if this was her principal residence for 2 out of last five years that would reduce the amount of taxes..
Also if she has to repay the reverse mortgage that further reduces the amount of the gain.
Here are the tax rates on the final amount..
Off the $4 million would come the loan payoff thats a chunk, the closing costs, the $250k exclusion, this should greatly reduce the amount she owes here if any..this is long term capital gains see the chart above for rates
I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again.
Looks like she might owe capital gains on say $1,750,000 less the $250,000 exemption so maybe taxes on $1,500,000
Here is the rate..
20% maybe $350,00 you may want to verify that with your tax preparer and also check to see if there are more deductions here.
I am just trying to give you a ballpark based on what I think you presented here.It is just that a guesstimate..