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    dacowboys's Avatar
    dacowboys Posts: 1, Reputation: 1
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    #1

    Jul 20, 2007, 09:20 AM
    House sale profit
    My wife and I are expecting to make a decent profit from the sale of our 1st house. We are separating so we will not be buying another house anytime soon. What kind of taxes/penalties should we expect to pay in order to pay off bills, split the profits, etc?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jul 20, 2007, 12:48 PM
    There should be NO taxes and NO penalties.

    In 1997, our beloved Congress changed the tax laws and made any profit (up to $500,000 for a married couple) made on the sale of a personal residence TAX-FREE.

    You do not even have to report the sale on your tax return.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jul 20, 2007, 12:57 PM
    That's England; this is the U.S. tax law.

    If you are sending this from England, all bets are off, as my expertise is for U.S. tax law ONLY!
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