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Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 53973
Experience:  29 years of experience as a tax, real estate, and business attorney.
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WE ARE SELLING OUR HOUSE WITH A NET OF 410000 APROXIMALLY WE

Customer Question

WE ARE SELLING OUR HOUSE FOR 785000 WITH A NET OF 410000 APROXIMALLY WE WILL PROBABLY SPEND AROUND 600000 ON THE NEW HOUSE WHAT THE TAX IMPLICATIONS TO THIS AND HOW CAN WE KEEP FROM ADDING TO OUR TAX BILL WE ARE ALSO INTERESTED IN A SERIES ON HOME AND ARE 65
Submitted: 1 year ago.
Category: Tax
Expert:  Richard replied 1 year ago.

Hi there. My name is ***** ***** I look forward to helping.

It no longer matters to you what you do with the proceeds from the sale of your house. As long as this is your principal residence (i.e., you've lived there at least 2 of the preceding 5 years as your principal residence), then under Section 121 of the Internal Revenue Code, you can exclude up to $500,000 in gain from sale if you are a married couple (it's $250,000 if single). So, if your gain is $410,000, you will be able to exclude all the gain and will have no tax resulting from your sale.

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