How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
16356563
Type Your Tax Question Here...
Wallstreet Esq. is online now
A new question is answered every 9 seconds

I'm interested in selling my home in California and wanted

Customer Question

Hello, I'm interested in selling my home in California and wanted to learn about the Capital Gains tax that I will be facing. How is capital gains tax calculated? I bought my place for $249k. However, we refinanced and the the loan was $299k. The pay off on the house is $235K and it will probably sell for $900k.
Submitted: 3 months ago.
Category: Tax
Expert:  emc011075 replied 3 months ago.

Hi. My name is ***** ***** I will be happy to help you.

Your capital gains will be difference between the sales price and your basis. Your basis will include the purchase price, expenses of sale and any capital improvements you made over the years.

Have you used the house as your principle residence for at least two years in the last 5 years? What is your filing status? You may qualify for 250/500K capital gains exclusion if you meet certain requirements.

Expert:  emc011075 replied 3 months ago.

Any questions?

You may be able to exclude 250K (500K if filing jointly) from your capital gains if you owned and used the property as your principle residence for at least 2 out of 5 years immediately prior the sale.

Long term capital gains are taxed at a lower tax rate than ordinary income, between 0 - 20%. In addition, because the Obamacare is still law of the land, the capital gains may also be subject to 3.8% of Net investment tax, depending on your total income and filing status.

Customer: replied 3 months ago.
What is long term capital gains considered? I've owned the house sin ce 1998 or 1999.
Expert:  emc011075 replied 3 months ago.

If you owned it for more than one year it is considered long term. Everything less than one year is short term.

Expert:  emc011075 replied 2 months ago.

I see you read my respond. Do you have any questions? Is there anything else I can help you with today?