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capital gains

Posted on: 15th Feb, 2006 04:51 pm
if I buy a house for 200,000 and the refiance a year later for 275,000
and then decide to sell for 300,000 di pay gains on the above $275,000 profit
Hi Terry,

Yes, I think you have to pay on the profit made over $275,000.

Angel
Posted on: 15th Feb, 2006 05:17 pm
If it's a primary residence no you do not. Your cap gains would be based on the purchase price not the refi even if it isn't your primary residence. A taxable event would occur on the sale of the property based on the original purchase price.....You can refie and take cash out as many times as you want without any taxation unless your state has a mortgage tax like Va or FL. I think the exemption is 500k on a primary residence but check with your tax preparer or CPA.
Posted on: 15th Feb, 2006 05:24 pm
Hi Terry,

Capital Gains Tax is a Tax payable on the profit from the sale of real estate.

The rate may depend upon many factors including the length of time for which the property was owned. Longer you stay, lower is the rate on the gains. The capital gain depends on purchase price.

You should take the help of a professional in dealing capital gain taxes.

Regards,
Blue
Posted on: 15th Feb, 2006 05:29 pm
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