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Say I sell my home for 1.3 million and after exclusion and…

Customer Question
Say I sell my...

Say I sell my home for 1.3 million and after exclusion and deductions for improvement I have a capital gain of 250,000. If I buy another home for $600,000—will that reduce the capital gain tax on the first house sale?

Accountant's Assistant: Because real estate law varies from place to place, can you tell me what state this is in?

Florida

Accountant's Assistant: Has any paperwork been filed?

First property sold...looking for second property

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

What is the cost of this question?

Accountant's Assistant: You just pay a $5 deposit now and the rest only when you get a reply from the Lawyer. All of this is 100% satisfaction guaranteed, so you can get a refund if you're not happy for any reason.

Ok

Submitted: 4 months ago.Category: Tax
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Answered in 56 minutes by:
11/29/2017
Tax Professional: Barbara, Enrolled Agent replied 4 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 5,784
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Unfortunately, purchasing another home/primary residence will not reduce the capital gain tax that is due on the sale of your first home.

As you probably already know, you will only pay tax on the gain, which is the DIFFERENCE between your basis (what you paid PLUS improvements and closing costs to purchase) and your sales price of $1.3 million LESS closing costs.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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Tax Professional: Barbara, Enrolled Agent replied 4 months ago

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

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Barbara
Barbara
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Category: Tax
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