Selling for less it's value, how much tax will I have to Pay?

joanndavis · #1 Feb 15, 2008, 07:29 AM

I live in Florida, home is in NC. The tax value and the price I got for the house is about half.
The condition of home was in bad shape and I could never afford to fix up.
I wondering how much tax I will owe on the sale of the house?

joanndavis · Feb 29, 2008, 03:31 PM

This is my first time selling this. I inherited the property from my dad. At the time it was valued at 57000.00, I paid taxes when I inherited it. So, when I get the 1099 from lawyer for 35000.00, how will I go about doing taxes as I don't have a income to file taxes..Just don't know how the procedure works? If you could help thanx.

joanndavis · Feb 29, 2008, 03:33 PM

Quote:

Originally Posted by AtlantaTaxExpert

If you sold the house for less than you paid for it, you will owe NOTHING.

If you lived in the house for at least two of the last five years and made a profit on the house, at least $250,000 of the profit is exempt from taxes.

How does the procedure work? I inherited it, value was 57000.00 sold it for 35000.00.
When i get 1099 from lawyer how will I go about doing taxes as i don't have a income?
If you can help, Thanks



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