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The US isn't so different. Federal capital gains taxes will eat a minimum of 10% of the appreciated portion of your home value, and more if you're in a higher
by anonymousiam 29d ago
The US isn't so different. Federal capital gains taxes will eat a minimum of 10% of the appreciated portion of your home value, and more if you're in a higher tax bracket. Many states also tax proceeds on a home sale. I've got a property that I'll be selling soon in California and I expect to pay about $400k in total taxes.
- yareally 28d agoYou can sell your primary residence and be exempt from capital gains taxes on the first $250,000 if you're single and $500,000 if married filing jointly. In addition to the $250,000 (or $500,000 for a couple) exemption, you can also subtract your full cost basis in the property from the sales price. Your cost basis is calculated by starting with the price you paid for the home, and then adding purchase expenses, such as closing costs, title insurance, and any settlement fees. Also, most (if not all) states do not tax your primary residence unless you go past the federal exemptions. https://www.investopedia.com/ask/answers/06/capitalgainhomesale.asp https://www.investopedia.com/ask/answers/06/capitalgainhomes...
- anonymousiam 27d agoThat's good info, but unfortunately none of it applies to me because I moved out of California eight years ago and the property is not my primary residence.
- dominicrose 28d agoI reckon California is increasingly democratic but at least you're talking about a tax on some good news. It's still quite taxing because you wouldn't gain any compensation if the home lost value and because a lot of the appreciated portion is probably just following inflation. The 15% I talked about is on the total value of the home, although to be fair 33+% of people avoid agency fees (about 7%) by selling directly to an individual.