Capital gains, how do it work?
 

I've never sold a house, so how does it work? I know it is a tax on what you make etc...but isn't there some provision that you don't have to pay it if you are selling and buy another in a year?

Or can you keep like 20% and the other 80% goes to the purchase of a new house?

Basically going to be selling my house here in Atlanta to move to Jacksonville Fl.

When you sell your primary residence, you can make up to $250,000 in profit if you're a single owner, twice that if you're married, and not owe any capital gains taxes.

You can write off improvements made against capital gains also.

Wait, so realistically, when I sell my house for 285,000, that I bought for 185000, I can walk with the 100K and not be taxed on it?

I mean, I'll more than likely be putting that 100K into a down payment, but really?

Please note, the figures stated above are PROFIT when sold. Very few homeowners will ever have to pay capital gains when selling a house.

At one time when you sold your primary residence you had I believe it was one year to purchase another primary residence and that residence had to be of equal or higher value than the one you sold else you had to pay capital gains on any profit. I believe this changed during the late 1990's.

yeah. Here's a Q: Are Capital gains really Capital gains when the price of everything has increased?

So long as you have lived there for 24 months - and I think they don't they have to be consecutive months - just 24 months out of the last 60 months of ownership.

It has to be your 'main' residence.

Yep - really - no taxes. And you can keep doing this - there isn't a 'limit' on the number of times.

But, check with your real tax guy -

Lived in the same house for 12 years, and I think I will need a few moments to process this. Holy crap that is good news!

Now, just need to find that job in Jax.

And to add another wrinkle, the exclusion is doubled to $500K if married.

And don't forget the once a lifetime exclusion of an unlimited profit on a primary residence. IIRC thats still in place.

Sweet....isn't it?

inflation tax.