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    whisky4's Avatar
    whisky4 Posts: 28, Reputation: 1
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    #1

    Oct 18, 2006, 10:55 AM
    Capital gains
    Hi,this whisky4 again to clarify in previous post,s,I close dthe purchase of last house on 9/31/04,sold same on 5/31/06 just short of (2)years purchase price was 129,999,sales price was 425,000,did both sale&purchase in same escrow office,purchase price of next
    Ho use was 155,000 plus we have put about 60,000 into new house purchase,
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Oct 18, 2006, 03:41 PM
    How much you put into the new house is irrelevent under current law.

    If you moved due to retirement or health reasons, then 80% of $250,000 (if single) or $500,000 (if married) is tax exempt. The

    If not, then the cost of purchase (in 2004) and sale (this year) are added to the basis, as well as any improvements made to the property, to decrease the amount realized, which currently is about $295K. At 15% (maximum capital gains rate), you are looking at about $44,000 in capital gains taxes.

    Recommend you get a tax professional to help you with this.
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