Have a Tax Question? Ask a Tax Expert
Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
How are you today?
Have you lived in the house for at least 2 years?
If so, you can exclude up to $250,000 of gains
Your gain is calculated by taking 1/2 of what you purchased the house for and subtracting it from the amount of money you receive in the transaction
If what you paid is more than what you are getting, there is a loss and no tax. The loss is not deductible
If what you paid is less than what you get, you have a gain. You can exclude up to $250,000 if you lived there for 2 years or more
We have been in the house over 20 years, it is almost paid for. I think we bought it for around $113,000 and it may be worth around $200,000 now. I am excepting $61000.
You have a $4,500 gain, but it is excluded. You owe no tax and do not report this transaction on your tax return
really? that is a good thing!
The fair market value of the house does not impact your gain or loss - it's based on what you paid for the house
Yes...you're in good shape. Better than you thought?
Do you have any further questions about this?
If not, please rate my response as "excellent" so that I may receive credit for assisting you today
Yes I was afraid I would end up paying taxes.
Well, fortunately you don't in this situation
I don't think I have any other questions. I will be able to print a transcript of this correct?
Yes, using the browser print function. And before you leave, please don't forget to rate
I will thank you.
You have been most helpful.
I'm glad you think so :-)