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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 53698
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I bought my home in 1977 .00 borrowed on equity of

Customer Question

I bought my home in 1977 for 27000.00 borrowed on equity of 88000.00 in 1998 and remodeled the home I still have a balance of about 112,000.00 and sold the home for 320,000.00 what would my taxes be on this I only have a debit card to pay with and you seem to not want to accept it.;
Submitted: 6 months ago.
Category: Tax
Expert:  Richard replied 6 months ago.
Good evening Shirley. My name is ***** ***** I look forward to helping you. Can you provide me a bit more information? How much was the cost of remodeling? Thanks.
Customer: replied 6 months ago.
the building part was 67,000 but the lights carpeting and tile was 3500.00 then the kitchen was 25,000. and was not part of the 88,000. it was done later
Customer: replied 6 months ago.
we also put a deck on and that I can not remember how much that was. And new siding
Expert:  Richard replied 6 months ago.
Thanks for following up and Good morning! You will not have any tax on the sale of the home. Your gain is based on: i) the sale price ($320,000)(less closing costs), less (ii) your basis (the purchase price plus the cost of improvements ($27,000 plus over $95000). That gain is less than $250,000. Under Section 121 of the Internal Revenue Code, you get to exclude up to $250,000 of capital gain from the sale of your principal residence. So, the bot***** *****ne is that you will be able to exclude all your gain and thus will owe no tax. :) Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!

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