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I am being quit deeded property for 50,000. I recently sold my house and made a profit of 107,000. I lived there in that house for ten + years. What kind of Capital gains should I expect now that I have reinvested the money into the new property?

jameshogg · Posted: Mon May 18, 2009 7:49 pm Post subject:

Hi Guest,

Though you reinvested the money to buy another property, you will be liable to pay the capital gains tax for the earlier property. Your capital gains tax will be based on the profit you make by selling the property compared to the original price of the property when you purchased it. You need to contact a tax assessor and he would help you in calculating the taxes.

Thanks

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

Tax relief act of 1997 helps you to avoid your captial gain taxes.
When you sell a personal residence, this law allows for an exlusion up to $250,000 in profit if you are single and $500,000 if you are married.

In order to be eligiable you must have lived in your house for two of the last 5 years. It must be the personal residence, nto investment property.

You cna use this exlcusion as many times as you like as long as it meets the above critiria.

If you sold your main home and made a profit, you may eb able to exclude that profit from you taxable income.

24 month rule may be bypassed only in special situatioins. if you need to sell your house due to change in your job and you had move or due medical conditions.

Please also consult a tax consultant.

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quit Claim Deed and capital gains in WA