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Old 11-02-2017, 11:21 AM
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California Home Sale Question

Hello
California (Los Angeles County)

Purchased a home in 2004 for 2.2M, sold it July 2017 for 2.6M.
Netted 2.1M after paying loan on it.

My question is, do I have any tax obligations on this transaction?
Thank you



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Old 11-04-2017, 11:50 AM
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Purchased a home in 2004 for 2.2M, sold it July 2017 for 2.6M.
Netted 2.1M after paying loan on it.======> Your LTCG is still $400K;$2.6M-$2.2M and also aslongas the home is your primary residence thaen you can exclude up to $250k of gain or $500k for a married couple filing jointly on the sale of a home.That means you will pay no tax unless you have lived there for less than 2 out of the last 5 years. During the 2-year period ending on the date of sale, you did not exclude gain from the sale of another home.
You can use this capital gain exclusion to avoid tax on a home sale over and over. You will have a tax bill for the amount of gains above $250k or $500k if you're married. This type of gain is taxed at the capital gains tax rate. To help reduce the amount of taxable gains, keep receipts and records of any improvements you made to the home. Certain types of home improvements can be added to your cost basis, and will thus reduce the amount of reported gain.



My question is, do I have any tax obligations on this transaction?=====>As mentioned above.



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