What tax must be paid when selling property

[Taxing]

What is the name of your state? Hawaii

If I were to sale property for 80,000 does anyone know what taxes I would have to pay or where I should go to find out? I believe there is a 500,000 exemption in the capital gains for a married couple. Also if this property has been your primary residence do you even have to pay capital gains tax? What about sales tax or is all of that covered here in Hawaii through personal income tax?

 

[jkruler]

What is the name of your state? Hawaii

If I were to sale property for 80,000 does anyone know what taxes I would have to pay or where I should go to find out? I believe there is a 500,000 exemption in the capital gains for a married couple. Also if this property has been your primary residence do you even have to pay capital gains tax? What about sales tax or is all of that covered here in Hawaii through personal income tax?

you do not pay sales tax or income tax when you sell real property. If the propery has been your primary residence for at least 2 of the previous 5 years, then you do have a 500,000 exlcusion from capital gains taxes (for a married couple). Since you are selling for 80,000 you obviously fall well below that limit, therefore you would not owe any capital gains taxes.

 

[Taxing]

Thank you I hope you are correct

Thank you for answering my post. I do appreciate the help and hope you are correct! But, I have one thought or question about this. How does the goverment get thier piece of the monies if you pay no taxes on the profit made on the sale of the property? I know 70,000.00 is not a large chunk of money but I have never knowen our government to pass up even a few dollars if they can get it. I am not slamming our government please understand that! Just confused

 

[jkruler]

Thank you for answering my post. I do appreciate the help and hope you are correct! But, I have one thought or question about this. How does the goverment get thier piece of the monies if you pay no taxes on the profit made on the sale of the property? I know 70,000.00 is not a large chunk of money but I have never knowen our government to pass up even a few dollars if they can get it. I am not slamming our government please understand that! Just confused

In this case the government does not get a share. If you would like to verify, the relevant statute is Section 121 of the Internal Revenue Code.

 

[Taxing]

Wow

Thanks again for the information and the code number . I have to say I am flabbergasted. You have made my day and I know my daughter will be grinning from ear to ear when she gets this information.