What is the name of your state?Arizona: I posted this on the real estate board and just realized I should have posted it here!
I'm thinking about selling my house just 1 year after purchase and am trying to get an idea of what my CG tax will be since I'd be selling before the 2 year exemption. Can anyone tell me if I'm on the right track on figuring this according to what I've learned so far:
1) Take the selling price of the home, deduct selling expenses such as realtor commissions & advertising fees, any legal fees, points I may agree to pay for the buyer, title & recording fees, and any other IRS approved fees like home repairs. 2) Next, deduct the amount I still owe on the house. 3) The remainder is what I pay taxes on? Is the tax a certain percentage for everyone - like 15% - or does it depend on what tax bracket I fall in?
Again, I'm just trying to get an idea of what my tax may be if I sell before waiting another year to be exempt altogether. Thanks for your help!
I'm thinking about selling my house just 1 year after purchase and am trying to get an idea of what my CG tax will be since I'd be selling before the 2 year exemption. Can anyone tell me if I'm on the right track on figuring this according to what I've learned so far:
1) Take the selling price of the home, deduct selling expenses such as realtor commissions & advertising fees, any legal fees, points I may agree to pay for the buyer, title & recording fees, and any other IRS approved fees like home repairs. 2) Next, deduct the amount I still owe on the house. 3) The remainder is what I pay taxes on? Is the tax a certain percentage for everyone - like 15% - or does it depend on what tax bracket I fall in?
Again, I'm just trying to get an idea of what my tax may be if I sell before waiting another year to be exempt altogether. Thanks for your help!