- quote -

Dont forget to account for eligible purchase costs- title
fees, etc. Also include seller-paid fees beyond the real
estate commission. Do not include any item you already wrote
off on taxes such as mortgage points and pre-paid property
tax. These are added to the price of the home to become the
"basis" amount in the CG calculation. The eligible purchase
fees may be around 2%, sellers fees 2% plus real estate
commission 6%, totalling around 9-11%, and probably leaving
you with no gain.

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kabergmann[at]earthlink.net (kabergmann) wrote:

- quote -

Most likely, you will only have a non-recognizable loss on
the sale, or a small gain. Capital gains rates (if held for
over a year) are only 15%, possibly only 5% if your AGI is
in the 15% or lower marginal bracket.

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abergmann[at]earthlink.net (kabergmann) wrote:

- quote -

You would probably pay nothing in capital gains. After
subtracting your selling expenses from the purchase price it
is highly likely that there would be no gain. The
commissions are $7740. You will probably have a variety of
other selling expenses such as: county transfer taxes,
recording fees, escrow fees, inspection fees, notary fees
and other small misc. fees. You may also incur the cost of
Title Insurance if you live in an area where the seller pays
rather than the buyer. You may also incur loan charges if as
a seller you paid loan origination fees (points). You may
also have legal fees if you had an attorney go over the
legal documents. All of these could easily add up to an
amount that would wipe out any gain.

Finally, if you made any capital improvements during the
year you owned the property, you can add that expense to
your original purchase price. You can also add to your
purchase price, certain costs you incurred in buying the
home. Many of those are the same as the ones you incur in
selling the home. Your adjusted cost basis would then be
higher than the purchase price.

Alan
http://taxtopics.net

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kabergmann[at]earthlink.net (kabergmann) writes:

- quote -


You'll have to do the math!!! There may be no tax after you
consider what is your basis. "Basis" is the amount you paid
for the home + certain closing costs + improvements +
costs of selling the property. You subtract it from the selling
price to determine taxable gain. Depending on the reasons
for selling, there could be an amount excluded from tax.
Estimated tax would not have to be paid as long as you have
paid in as much as was your prior year tax (12% if your AGI
exceeded $150,000 in the prior year) or you've paid in at least
90% of what will be your current year liability or you owe less
than $1,000 on the bottom line of your tax return for 2003.

Schedule D "Capital Gains and Losses" is used to help
calculate tax due, if any, and may be viewed or downloaded
from http://www.irs.gov/pub/irs-pdf/f1040sd.pdf

Gains are taxable. Personal losses from such sales
are not deductible.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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My husband and I are selling our home in CT to buy another
one. We have only owned it for a year. We paid 119,000 for
it and we will be lucky to get 129,000 for it. We are
paying an agent 6% to sell it. What would we pay capital
gains taxes on; about how much would it be; and do we pay it
when we sell the house or when we file our taxes?

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