- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Does anyone know how I am to be taxed on a home sold?
Posted on 1/12/22 at 6:31 am to millsrat
Posted on 1/12/22 at 6:31 am to millsrat
quote:
1st step is to determine your gain which is the selling price minus your basis and selling expenses. Your basis is your purchase price of the property plus any improvements made over the time you owned it unless it was inherited or gifted to you. An inherited asset's basis is whatever it was worth the date of the decedent's death. A gifted asset's basis is whatever the giver paid for it.
2nd step is to determine if the gain is greater than $250k or $500k if married. Any gain over that applicable threshold is taxed as a long-term capital gain.
Most people don't pay any tax on the sale of their home, but I saw a few this past year on homes that were gifted to the seller which would cause them to have a low basis. The sky-rocketing real estate prices have also made some home sales result in gains >$500k.
Tax CPA here. This.
Also, most of Bidens proposed changes to the tax code involve getting rid of the step-up in basis for inheritances. That means for capital gains calculations inheritances would be treated like gifts which is likely to hurt those inheriting a home. Plan accordingly.
Posted on 1/12/22 at 9:30 am to PNW_TigerSaint
quote:
involve getting rid of the step-up in basis for inheritances.
Which would be an absolute nightmare for record keeping - that might be the idea - they better hire a lot more IRS agents.
Posted on 1/12/22 at 10:35 am to PNW_TigerSaint
quote:
Tax CPA here. This.
Also, most of Bidens proposed changes to the tax code involve getting rid of the step-up in basis for inheritances. That means for capital gains calculations inheritances would be treated like gifts which is likely to hurt those inheriting a home. Plan accordingly.
Would this be applicable to a sale in 2021?
Popular
Back to top
Follow TigerDroppings for LSU Football News