Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
It is correct - you do not have to pay tax on the sale of the house, if there is no gain.
However, if you sold on a land contract and receive interest payments, you must pay ordinary income tax on the interest you receive from the sale of your home.
Even if you did have a gain (which you didn't ) you wouldn't owe tax on the gain unless it was over $250,000 if you lived in the house 2 out of 5 years
So, you're in good position not to owe tax.
What part would be interest it there wasn't any profit? Oh... you mean the 7.5% I'm charging. Ok, the little light in my head just popped on! Thanks
Yes, the 7.5% interest
Ok. Thanks a ton.