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Good morning. How much did you pay for the house and did you spend any money since the purchase on improvements..if so, how much? Thanks.
The house was the one I grew up in. I bought it from my Dad/Mom back in the mid 80's and they lived in it until they passed away earlier this year. I paid $42,000 for the house. Only improvements was a roof we had installed for $3500 but no receipt can be found. I had left it with Dad in case it was needed sometime for repair and wasn't able to locate it. I had a dishwasher installed a couple of months ago ($250). Nothing else.
Thanks. You pay tax on the gain...$50,000 (less closing costs) minus your basis, which is $42,000 plus the $3500 plus the $250. Thus, you have gain of $4250. Because you have owned it as long as you have, this is long term capital gain taxed at 15%. So, your tax is 15% times $4250.
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Very happy and satisfied with the advice you have given me. Much appreciated.