Discussion:Tax on Cap Gain over $500k with new home
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Discussion Forum Index --> Tax Questions --> Tax on Cap Gain over $500k with new home
| 10 April 2006 | |
| We will sell our current home for $700,000.00. We have the $500,000.00 deduction and $50,000.00 in improvements. But we will purchase a new prin home for $350,000.00.
Will we have a reportable gain on the $150,000.00 or not? | |
Chris2lane (talk|edits) said: | 10 April 2006 |
| What did you purchase your home for? Ex. if your purchase was for $100,000, and you lived in said house for 2 out of the last 5 years, you then add the $50,000 improvements to your basis equalling $150,000. If you then sell it for $700,000, your gain is $550,000 less the $500,000 exlcusion equalling $50,000 in capital gains. Purchase price of new home is immaterial. | |
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