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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3219
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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An elderly couple selling a second home, are the monies

Customer Question

An elderly couple selling a second home, are the monies gained from the sale taxable? Is this true only of the personal residence?
Submitted: 6 months ago.
Category: Tax
Expert:  Barbara replied 6 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Capital gains tax is due on the sale of a second home. You will pay capital gains tax on the difference between your adjusted basis and the sales price.

The following link contains excellent information which you will find helpful:

http://finance.zacks.com/second-home-capital-gain-tax-rules-7781.html

The sale of home exclusion (up to $500,000 for a married couple filing a joint return) for capital gains applies to the sale of your primary residence only.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Expert:  Barbara replied 6 months ago.

Just following up with you to see if you have any other questions or concerns. If so, please let me know so I can assist you further.

Best regards,

Barb

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