|
|
| *Loan,banking and credit>>>real estate tax |
When you pay capital gains tax on real estate, is the tax figured on the sale price, or your profit? |
for example, i buy a condo for $130,000, and sell it for $180,000;do i pay the 15% on the $180k, or on $50k? You pay the taxes on the profit. You calculate the profit by deducting from the selling price the following; Your cost (what you paid for it) Any improvements you made to it (you need receipts) Realtor commissions on the sale. Closing costs. Whatever is left is your taxable profit. You also have as a single individual a deduction of $250,000 every three years from capital gains so you only pay taxes on any gain above $250,000 ever three years. Talk to your accountant. I hope this puts a smile on your face. Actually, $50,000 less any major improvements you may make. For example, new kitchen counters, upgrade the bathroom, etc. Capital gains tax is paid on the net profit. The sales price minus your cost. http://www.irs.gov/newsroom/article/0,,i... Capital gain tax is always calculated on the profit figure but after the indexation and taper relief. You pay tax on the profit, in your example on $50K, less any commissions and money spent on improvements (you can't deduct cost of repairs). If it was your primary residence, check to see if you qualify to exclude the gain from being taxed. |
| Tags |
| import tax inheritance tax pay tax payroll tax property tax real estate tax sales tax service tax state taxes fair tax federal tax |
SiteMap--Copyright/IP Policy--Contact Webmaster--Resource of HR For personal non-commercial use only. |