Do I have to do taxes again

[Carlanga]

What is the name of your state? California

 

[LdiJ]

What is the name of your state? California

We are going to need more information in order to give you advice.

 

[Carlanga]

What is the name of your state? California

Hello everyone,my question is taxes were done on my behalf on a capital gain of sell of my house,the taxes were filed on the amount of $84,000 on the year 2019,after a power of attorney abuse done to me from one of my kids I manage to revoke and regain control of the money but it was return to me on mid of 2020 and I'm a senior 73 years old on ssa the amount return to me was $46,000 but by now the amount is 13,000 dollars do I have to do taxes for the year 2020 with the amount that I got left?

 

[LdiJ]

Hello everyone,my question is taxes were done on my behalf on a capital gain of sell of my house,the taxes were filed on the amount of $84,000 on the year 2019,after a power of attorney abuse done to me from one of my kids I manage to revoke and regain control of the money but it was return to me on mid of 2020 and I'm a senior 73 years old on ssa the amount return to me was $46,000 but by now the amount is 13,000 dollars do I have to do taxes for the year 2020 with the amount that I got left?

I hope that I am understanding you correctly.

Capital gains tax would be reported and paid on the tax return for the year that the property was sold. If someone filed a tax return on your behalf for that year and paid any tax due, then no, you would not report and pay tax on the money again.

However, you said "my house". If you are referring to a house that was your personal residence for at least 2 or the previous 5 years before it was sold, you should not have had to pay capital gains tax at all.

 

[Carlanga]

I hope that I am understanding you correctly.

Capital gains tax would be reported and paid on the tax return for the year that the property was sold. If someone filed a tax return on your behalf for that year and paid any tax due, then no, you would not report and pay tax on the money again.

However, you said "my house". If you are referring to a house that was your personal residence for at least 2 or the previous 5 years before it was sold, you should not have had to pay capital gains tax at all.

Yes I was my house live there for over 50 years and once the house was sold i down size to something smaller and on the year 2019 when the taxes were filed i pay taxes on that amount so now after everything that happen the amount went way down to $10,000 so I wasn't sure if I have to do taxes for 2020

 

[Carlanga]

Yes I was my house live there for over 50 years and once the house was sold i down size to something smaller and on the year 2019 when the taxes were filed i pay taxes on that amount so now after everything that happen the amount went way down to $10,000 so I wasn't sure if I have to do taxes for 2020

I wanted to thank you so much for the answer because of people like you,people like me got point in the right direction, God bless you all .

 

[LdiJ]

Yes I was my house live there for over 50 years and once the house was sold i down size to something smaller and on the year 2019 when the taxes were filed i pay taxes on that amount so now after everything that happen the amount went way down to $10,000 so I wasn't sure if I have to do taxes for 2020

Was the mortgage on the house paid off? Was $84,000 your entire capital gain or was it the amount after the $250,000 capital gains exclusion? I think that you need a consult with a local tax professional. Your figures don't necessarily make sense for California. You need to review things with someone who can go over your paperwork regarding the house and regarding any taxes you previously paid.

 

[Carlanga]

I wanted to thank you so much for the answer because of people like you,people like me got point in the right direction, God bless you all .

Was the mortgage on the house paid off? Was $84,000 your entire capital gain or was it the amount after the $250,000 capital gains exclusion? I think that you need a consult with a local tax professional. Your figures don't necessarily make sense for California. You need to review things with someone who can go over your paperwork regarding the house and regarding any taxes you previously paid.

My house was paid out in full i paid over the years the whole amount then I got hurt at work and end up in permanent dessability i paid $17,950 then I was sold for $400,00 then I purchase a condo for $250,00 and after expenses such a realtor, escrow and all that the amount left was $84,000 it didn't have any mortgage

 

[Carlanga]

My house was paid out in full i paid over the years the whole amount then I got hurt at work and end up in permanent dessability i paid $17,950 then I was sold for $400,00 then I purchase a condo for $250,00 and after expenses such a realtor, escrow and all that the amount left was $84,000 it didn't have any mortgage

Like I say I live in that house for 57 years and manage to pay it all on a bartenders salary with no husband and four kids i got divorced when they were little and end up with the house settle in divorce court

 

[Carlanga]

Like I say I live in that house for 57 years and manage to pay it all on a bartenders salary with no husband and four kids i got divorced when they were little and end up with the house settle in divorce court

Do I still have to see a tax expert ?

 

[LdiJ]

My house was paid out in full i paid over the years the whole amount then I got hurt at work and end up in permanent dessability i paid $17,950 then I was sold for $400,00 then I purchase a condo for $250,00 and after expenses such a realtor, escrow and all that the amount left was $84,000 it didn't have any mortgage

Based on those numbers, your capital gain would have been $382,000. You would have had a $250,000 capital gains exclusion, leaving a taxable capital gain of 132,000. Allowing for selling expenses and major improvement you may have made on the home, your taxable capital gain could have been less than that and probably was.

Again, if a tax return was filed for you for the year that the house was sold, and the tax properly paid, there would be no reason for you to include any of that money on a tax return for 2020. If SS benefits are your only income, you would not need to file a tax return at all. If you have income from other sources as well as SS, then that could change.

 

[Carlanga]

Based on those numbers, your capital gain would have been $382,000. You would have had a $250,000 capital gains exclusion, leaving a taxable capital gain of 132,000. Allowing for selling expenses and major improvement you may have made on the home, your taxable capital gain could have been less than that and probably was.

Again, if a tax return was filed for you for the year that the house was sold, and the tax properly paid, there would be no reason for you to include any of that money on a tax return for 2020. If SS benefits are your only income, you would not need to file a tax return at all. If you have income from other sources as well as SS, then that could change.

Thank you very much that answer my question