estate tax capital gains
Capital gains tax on a $75,000 house in N.C.?
The house and land are selling for $75,000 and I wonder what kind of tax I’ll be required to pay. The buyer has said he’ll pay be real estate tax.
I live in VA and wondered if capital gains would be in addition to income tax?
I assume you are selling. Under federal tax code the cap gains tax depends upon how long you have lived in the home. Under federal law the first $250,000 of home sales capital gain is tax exempt if you have lived in the home at least 2 of the last 5 years. The limit is $500,000 for a couple.
There will be transfer taxes at the state and local levels, but it sounds like your cap gains are exempt if you meet the above criteria.
On the other hand it is considered taxable income in most cases if those rules are not met. It is taxed at the same rate as you pay otherwise for your income bracket.
For expert advise see a tax accountant in your area. He or she should be able to answer your questions about the laws in VA and as they pertain to you in this case.
capital gains
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