In Germany you do not pay Taxes after ten years, if do use it privatly. It does not care how high the gain is after ten years. But it Must be refer to Business Assets.
I'm still confused about how/if this long term gain impacts your overall tax bill. The excess gain still seems to flow into your AGI, which can boost you up toward a hefty bill. I just calculated this with my sale and YIKES - the tax was $55k. My gain, after cost, improvements and the $250k exclusion was still $300k! That was added to my AGI and wham, my tax liability spiked!! So, while it looks like my other ordinary income was taxed at the regular ordinary rate, the excess is STILL subject to the 15% LT Gain. Even though my AGI without factoring in the long term gain was below $40k.
What about selling a second home? It's not an investment property or rental but a regular second home in another state lived in 3 to 4 months of the year to escape the winter months. Selling it after owning for 10 years, There is a selling price minus original purchase plus improvements, etc. to calculate the final gain. My question is can taxes that you paid on the property be entered into the equation to reduce the profit gain. I read somewhere where you could allow up to $10,000, but it wasn't clear. Hope this question makes sense.
Bought my house married $168,000 Divorced 3 years but her name is still in the house Owned the house for 10 plus years Selling my house now that I'm single but her name in the house for $470300 Profit $305000 What gets taxed 305000 or 55,0000
I lived in my property for 20 years sold it for 575,000 due to court order and the proceeds were splinted in two , so each obtained half , less than 250,000 so my question is if I have to pay taxes or if I have to roll it on another property,
I was called by a tax company saying that the IRS has a lien due to 1099 real estate taxes on on selling house. They have charged me over 6,000 and still owe 7,000 more to help me . E 1099 was for 239,500. I had to sell the house due to divorce. So due I qualify. I livers more of 2 of five years
If you sold your house and it was your primary residence for at least 2 of the previous 5 years, you should have been able to qualify for the $250,000 single filer gain exclusion. Unless part of your house was a rental property, then other factors could come into play. Call the tax side of our firm, they may be able to help 518-477-1102 (Comment is for education. Not advice)
If I bought my primary residence for $200K, sold it for $500K and filed as married jointly, I understand that my capital gain of $300K can be excluded from capital gains tax. However, does that $300K still get added to my AGI? If so, am I correct in assuming that it could very well push me up into a higher income tax bracket for that year? Thanks for the informative video.
My mother put my name on her home before she passed. I have not lived there for many years, if I sell the house how screwed am I. The house was bought for 8,100 dollars in 1956…. It is now worth about $325,000?
Hi, great video. Does this apply to Nevada. I just sold my house. I owned it for 3 years and lived in it for 2 years. I rented it out for 1 year and didn’t make any income off of it. I actually had to pay a small portion of it Each month. I also make less than 25k a year and currently a student that’s unemployed due to school. How would I go about that? Oh, I bought the house for $202k and sold for $270k.
Question. I purchase my home back in 1998 for $110K now I sold for $285K. I’m single n my primary home. Live there over 20years. Do I exempt capital gain for single 250K??
Let me be a little more specific, so I bought the house for 160,000, lived in it for 20 year sold it for 575,000 due to divorce and each received 224,500, we started filing taxes married separated few years before the sell of the property
What was the ownership structure of the house on the day that you sold it. Did you own it 100% or was it still owned 50/50 between you and your spouse? (Comment is for education. Not advice)
@@greenbushfinancialgroup Hi I have a similar question. Divorce after sale of house & my husband bought the house in his name only when we were engaged for 1st time buyer. We lived in it 19 years. Once we married we did not add my name to the mortgage. At settlement he had the buyer cut 2 checks and he endorsed the check to me to deposit in my own account. So, does this mean I can claim the house sale as 1/2 of the house I'm entitled to in the divorce? Or is this 1/2 payment considered something else by IRS? Thanks in advance!
@lisav85 If the house was sold prior to the divorce and you and your husband filed a joint tax return in the year the house was sold, then you would be entitled to the full $500K gain exclusion for joint filers even through your name was not on the deed. However, if you did not file a joint tax return in the year the primary house was sold, you would only receive a $250K exclusion and the rest of the gain would be taxable. (Comment is for education. Not advice)
So if the gain was less than the amounts you gave we don't have to report it anywhere on our taxes ? Am I understanding correctly? Or would I put the amounts on a schedule D?
I've lived in my home for 14 months. Spouse and I have a taxable income of $40,000. Does this mean I would pay 0% capital gains tax after selling my home ?Thank you so much for this video!
It has to be your primary residence for at least 2 year (24 months) to make you eligible for the $500K gain exclusion for married couples. (Comment is for education. Not advice)
@@greenbushfinancialgroup I think you will get $500K gain exclusion if you live in the home form buying to selling time . If you rent your home for 10 years and then reside in your home for 2 years you and your spouse will be eligible for $100K , but not for $500K! This is my understanding from this informative video.
Enjoyed the video! Thanks! Suppose you are single, retired with a modest pension and have lived in your house (primary residence) for over 30 years. If you sell your house and have a capital gain over $250,000. and a Taxable Income from your pension below $40,000.? I'm thinking capital gains is taxed at 0% currently for incomes less than $40,000. Do you not owe any tax on the sale even though it is above the 121 exclusion?
Hi Mark. Some of your gain may be taxed at 0% while the rest taxed at regular cap gains rates. We wrote an article about this on our website. www.greenbushfinancial.com/how-to-pay-0-tax-on-capital-gains-income/ (Comment is for education. Not advice)
Don't forget to deduct all your improvements over the yrs. New heat system, roof, landscaping all can be deducted from gains. Married can exclide up to 500k, singles 250k
What if you inherited the house? My Mom bought this house in 2003 for 179 she transferred the house in my name, quit claim deed, just before she died nearly 2 years ago... I'm trying to hang on to the house but I'm having a very hard time trying to hang on to it I might be forced to sell it. I'm disabled and a senior myself from all that I know the house might be worth now about 350 cant be sure though its a one family with a pool. Its never been rented as long as my Mom owned it and I have lived in it since day one and we made no major changes to the house only minor ones new water tank from the start but nothing else really. Have you any idea if there might be anything I have to pay if I were to sell it now? Also is it the same in every state? I'm in AZ. Might the new admin raise these taxes any time soon you think? Thanks.
If your mom gifted you the house via a quit claim deed prior to her passing away, you inherit her cost basis in the property. Meaning if you sell it you have to pay tax on the difference between what it sells for and what she bought it for. because she gifted to the property prior to her passing away you do not receive the step up in cost basis when she passes away. You have to pay fed tax and potentially state tax on the gain in the property when you sell it. (Comment is for education. Not advice)
From what I understanding if I am selling my house ( regular residence) and the gain less than 25000$ don’t need to report ? Ex my property sold for 278000$ when I bought it was 210000$. Is that mean I don’t have to doing anything with tax. Is that correct sir. Note I was living there since 2014 and sold it on 2019.
Yes, if the gain on the value of your primary residence is less than $250,000 then you avoid having to pay tax on the gain. (Comment is for education. Not advice)
When I calculate the capital gain, aside from the basis, can I subtract the mortgage amount that I still owe the bank from the total sale price or strictly sale price - basis only?
The amount of your mortgage does not factor in to the cost basis calculation. Cost basis is just what you paid for the house plus any capital improvements that you made while you owned it. (Comment is for education. Not advice)
@@greenbushfinancialgroup If you Just rented to a family member and did straight cash for the entire time then technically you didn't rent it and just shared your home with family correct?
Thanks for the informative video! I net gained $222K from the sale of my home in Colorado in December 2020 and bought a new home in another state for $200K also in December 2020. I normally do my taxes myself from home online every year but my closing agent suggested I see an agent in person to make sure it's done right to claim the sale of my home. Would you suggest this as well or is there a simple straightforward form(s) I can fill out myself from home through H&R Block online that should be accurate?
Since the gain is under $250K for a single filer / $500K for married filing joint, it should be pretty simple and straight forward. If you were closer to the limit and trying to use capital improvements to avoid paying taxes on the gain, at that point I would recommend working with a tax professional to make sure you are calculating your cost basis correctly. (Comment is for education. Not advice)
Hi there! I do have a quick question on primary residence? I bought a house for $459,000 and sold it 3 years later for $540,000 . Filing status married. Do I have to pay any taxes on capital gain?
If it was your primary residence for those 3 years, no tax would be due because you are covered by the $500k gain exclusion. It’s assessed on the amount of the gain, not the sales price of the house. (Comment is for education. Not advice)
In Germany you do not pay Taxes after ten years, if do use it privatly. It does not care how high the gain is after ten years. But it Must be refer to Business Assets.
You need to teach college courses. This video was awesome. Listening to you is easy. Thank you.
Great video. Thank you for explaining it soo simple
Great video
I'm still confused about how/if this long term gain impacts your overall tax bill. The excess gain still seems to flow into your AGI, which can boost you up toward a hefty bill. I just calculated this with my sale and YIKES - the tax was $55k. My gain, after cost, improvements and the $250k exclusion was still $300k! That was added to my AGI and wham, my tax liability spiked!! So, while it looks like my other ordinary income was taxed at the regular ordinary rate, the excess is STILL subject to the 15% LT Gain. Even though my AGI without factoring in the long term gain was below $40k.
What about selling a second home? It's not an investment property or rental but a regular second home in another state lived in 3 to 4 months of the year to escape the winter months. Selling it after owning for 10 years, There is a selling price minus original purchase plus improvements, etc. to calculate the final gain. My question is can taxes that you paid on the property be entered into the equation to reduce the profit gain. I read somewhere where you could allow up to $10,000, but it wasn't clear. Hope this question makes sense.
Bought my house married $168,000
Divorced 3 years but her name is still in the house
Owned the house for 10 plus years
Selling my house now that I'm single but her name in the house for $470300
Profit $305000
What gets taxed 305000 or 55,0000
I lived in my property for 20 years sold it for 575,000 due to court order and the proceeds were splinted in two , so each obtained half , less than 250,000 so my question is if I have to pay taxes or if I have to roll it on another property,
Thank you for this video!
Thank you for your advice.
I was called by a tax company saying that the IRS has a lien due to 1099 real estate taxes on on selling house. They have charged me over 6,000 and still owe 7,000 more to help me . E 1099 was for 239,500. I had to sell the house due to divorce. So due I qualify. I livers more of 2 of five years
If you sold your house and it was your primary residence for at least 2 of the previous 5 years, you should have been able to qualify for the $250,000 single filer gain exclusion. Unless part of your house was a rental property, then other factors could come into play. Call the tax side of our firm, they may be able to help 518-477-1102 (Comment is for education. Not advice)
If these people are tax attorney why didn’t they know that or are they a scam
If I bought my primary residence for $200K, sold it for $500K and filed as married jointly, I understand that my capital gain of $300K can be excluded from capital gains tax. However, does that $300K still get added to my AGI? If so, am I correct in assuming that it could very well push me up into a higher income tax bracket for that year? Thanks for the informative video.
My mother put my name on her home before she passed. I have not lived there for many years, if I sell the house how screwed am I. The house was bought for 8,100 dollars in 1956…. It is now worth about $325,000?
Was her name still on the house when she passed (joint ownership) or did she transfer the deed 100% to you? (Comment is for education. Not advice)
@@greenbushfinancialgroup it was and/ or….
Hi, great video. Does this apply to Nevada. I just sold my house. I owned it for 3 years and lived in it for 2 years. I rented it out for 1 year and didn’t make any income off of it. I actually had to pay a small portion of it Each month. I also make less than 25k a year and currently a student that’s unemployed due to school. How would I go about that? Oh, I bought the house for $202k and sold for $270k.
Question. I purchase my home back in 1998 for $110K now I sold for $285K. I’m single n my primary home. Live there over 20years. Do I exempt capital gain for single 250K??
Hi, after I paid both federal and state capital gain, does the rest of the gain consider my income? so I will need to pay tax? Thank you.
Let me be a little more specific, so I bought the house for 160,000, lived in it for 20 year sold it for 575,000 due to divorce and each received 224,500, we started filing taxes married separated few years before the sell of the property
What was the ownership structure of the house on the day that you sold it. Did you own it 100% or was it still owned 50/50 between you and your spouse? (Comment is for education. Not advice)
Should not have gotten married dont do it again
@@greenbushfinancialgroup Hi I have a similar question. Divorce after sale of house & my husband bought the house in his name only when we were engaged for 1st time buyer. We lived in it 19 years. Once we married we did not add my name to the mortgage. At settlement he had the buyer cut 2 checks and he endorsed the check to me to deposit in my own account. So, does this mean I can claim the house sale as 1/2 of the house I'm entitled to in the divorce? Or is this 1/2 payment considered something else by IRS? Thanks in advance!
@lisav85 If the house was sold prior to the divorce and you and your husband filed a joint tax return in the year the house was sold, then you would be entitled to the full $500K gain exclusion for joint filers even through your name was not on the deed. However, if you did not file a joint tax return in the year the primary house was sold, you would only receive a $250K exclusion and the rest of the gain would be taxable. (Comment is for education. Not advice)
So if the gain was less than the amounts you gave we don't have to report it anywhere on our taxes ? Am I understanding correctly? Or would I put the amounts on a schedule D?
What is married filling separate ? .the house is only on my name ? Thanks.
I've lived in my home for 14 months. Spouse and I have a taxable income of $40,000. Does this mean I would pay 0% capital gains tax after selling my home ?Thank you so much for this video!
It has to be your primary residence for at least 2 year (24 months) to make you eligible for the $500K gain exclusion for married couples. (Comment is for education. Not advice)
@@greenbushfinancialgroup I think you will get $500K gain exclusion if you live in the home form buying to selling time . If you rent your home for 10 years and then reside in your home for 2 years you and your spouse will be eligible for $100K , but not for $500K!
This is my understanding from this informative video.
🔥🔥🔥
Enjoyed the video! Thanks! Suppose you are single, retired with a modest pension and have lived in your house (primary residence) for over 30 years. If you sell your house and have a capital gain over $250,000. and a Taxable Income from your pension below $40,000.? I'm thinking capital gains is taxed at 0% currently for incomes less than $40,000. Do you not owe any tax on the sale even though it is above the 121 exclusion?
Hi Mark. Some of your gain may be taxed at 0% while the rest taxed at regular cap gains rates. We wrote an article about this on our website.
www.greenbushfinancial.com/how-to-pay-0-tax-on-capital-gains-income/ (Comment is for education. Not advice)
Don't forget to deduct all your improvements over the yrs. New heat system, roof, landscaping all can be deducted from gains. Married can exclide up to 500k, singles 250k
What if you inherited the house? My Mom bought this house in 2003 for 179 she transferred the house in my name, quit claim deed, just before she died nearly 2 years ago... I'm trying to hang on to the house but I'm having a very hard time trying to hang on to it I might be forced to sell it. I'm disabled and a senior myself from all that I know the house might be worth now about 350 cant be sure though its a one family with a pool. Its never been rented as long as my Mom owned it and I have lived in it since day one and we made no major changes to the house only minor ones new water tank from the start but nothing else really. Have you any idea if there might be anything I have to pay if I were to sell it now? Also is it the same in every state? I'm in AZ. Might the new admin raise these taxes any time soon you think? Thanks.
If your mom gifted you the house via a quit claim deed prior to her passing away, you inherit her cost basis in the property. Meaning if you sell it you have to pay tax on the difference between what it sells for and what she bought it for. because she gifted to the property prior to her passing away you do not receive the step up in cost basis when she passes away. You have to pay fed tax and potentially state tax on the gain in the property when you sell it. (Comment is for education. Not advice)
I got a house 2 years ago do i qualify is my primary residense
From what I understanding if I am selling my house ( regular residence) and the gain less than 25000$ don’t need to report ? Ex my property sold for 278000$ when I bought it was 210000$. Is that mean I don’t have to doing anything with tax. Is that correct sir. Note I was living there since 2014 and sold it on 2019.
Yes, if the gain on the value of your primary residence is less than $250,000 then you avoid having to pay tax on the gain. (Comment is for education. Not advice)
When I calculate the capital gain, aside from the basis, can I subtract the mortgage amount that I still owe the bank from the total sale price or strictly sale price - basis only?
The amount of your mortgage does not factor in to the cost basis calculation. Cost basis is just what you paid for the house plus any capital improvements that you made while you owned it. (Comment is for education. Not advice)
@@greenbushfinancialgroup Thank you.
Question. I’m sell my primary house live there over 25 years n single. Do I needs to file tax when I sell the house? Thanks 🙏
If you are single filer, as long as the gain is not over $250K, you will not have a taxable gain on the property.
Does the duplex example apply to 3 family properties as well?
Yes, same concept. Square footage of investment property vs primary unit. (Comment is for education. Not advice)
@@greenbushfinancialgroup
If you Just rented to a family member and did straight cash for the entire time then technically you didn't rent it and just shared your home with family correct?
Great video!
Is the tax exclusion only for married couples?
No. Single filers get $250K, married filers get $500K (Comment is for education. Not advice)
Thanks for the informative video! I net gained $222K from the sale of my home in Colorado in December 2020 and bought a new home in another state for $200K also in December 2020. I normally do my taxes myself from home online every year but my closing agent suggested I see an agent in person to make sure it's done right to claim the sale of my home. Would you suggest this as well or is there a simple straightforward form(s) I can fill out myself from home through H&R Block online that should be accurate?
Since the gain is under $250K for a single filer / $500K for married filing joint, it should be pretty simple and straight forward. If you were closer to the limit and trying to use capital improvements to avoid paying taxes on the gain, at that point I would recommend working with a tax professional to make sure you are calculating your cost basis correctly. (Comment is for education. Not advice)
@@greenbushfinancialgroup Thanks so much for your reply. :)
Hi there!
I do have a quick question on primary residence?
I bought a house for $459,000 and sold it 3 years later for $540,000 . Filing status married. Do I have to pay any taxes on capital gain?
If it was your primary residence for those 3 years, no tax would be due because you are covered by the $500k gain exclusion. It’s assessed on the amount of the gain, not the sales price of the house. (Comment is for education. Not advice)