Boca Raton Real Estate CommunitiesLooking for luxury home communities in Boca Raton? Use our site to view all the best Boca Raton communities. |
| 9858 Clint Moore Road, Boca Raton, FL 33496 | Caesar: (561) 715-8630 or Eileen: (561) 271-1311 |
|
 |
 |
 |
 |
|||||
|
 |
|||||||
| Luxury Communities Waterfront Communities Country Club Communities Neighborhood Communities |
 |
|
Capital Gains Tax and Depreciation
If you have made a profit when you sell your house, you may have to pay some income tax. Last week, we discussed the exclusions of up to $250,000/500,000 for your principal residence. But what if you made more profit than you can exclude? Or what if you used a portion of your home as a home office ? Or what if the property you sold was rented out for a period of time? How do you determine profit? The IRS explains this with the following formula: Selling Price - Selling Expense = Amount Realized Amount Realized - Adjusted Basis Gain (or loss) (IRS Publication 523, Selling Your Home. This is available on the web at IRS.gov, and click on Publications .) Let's take the following example. You bought your house for $290,000 and at settlement paid $10,000 in closing costs (such as title search, survey, legal fees). Your basis is $300,000. Several years later, you added a room to your house at a cost of $50,000 and now your adjusted basis is $350,000. You have now sold your house for $635,000. In order to accomplish this, you paid a real estate commission of $30,000, legal and settlement fees of $2,000, and miscellaneous expenses of $3,000. To determine the amount realized you deduct these costs ($35,000) from the selling price, and come up with $600,000. Many homeowners want to deduct the amount of their outstanding mortgage when calculating gain. That just will not work. You cannot take your mortgage into consideration when you are determining your profit. It is, of course, useful to determine how much money you can take to the bank after the house is sold. Ready to buy or sell Palm Beach real estate? Consult with licensed agent Caesar Parisi. Caesar has assisted hundreds of buyers and sellers, giving sound advice on how to most effectively buy and sell property. click here for article |
|
|
||
|
||
|
Boca Raton Real Estate - Buyers - Sellers - Location - Boca Information
Search MLS - Featured Properties - Email Updates - Customer Login - Home Valuation
Communities : Luxury Homes - Neighborhood Communities - Country Clubs - Waterfront Communities
About Us - Contact Us - Resources - Real Estate News - Boca Raton Real Estate
