Consumption and Real Estate
How much tax will we have to pay on the sale of our main home in Seattle?
Question : How much tax will we have to pay on the sale of our main home in Seattle?
We are selling our home in Seattle and relocating to California. The value of our home has risen by more than the $ 500k exclusion for a married couple, even when we take out expenditure on improvements. Will we have to pay capital gains tax on the extra profit even if we are re-investing in another property in California as our main home?
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Best answer:
Answer by feanor
Yes…I think they eliminated the roll-over exception.
Because you are married and you both ahve lived in the home you will each be able to exclude $ 250,000 of the gain from your taxable income, or a total of $ 500,000. Any gain above this is taxed at 15% for federal taxes and at whatever your state rate is. Not a bad deal.
Reinvesting went away when they did away with once in a lifetime $ 125,000 exclusion.