HOW CAN YOU AVOID TO PAY TAXES ON THE PROFIT OF YOUR HOME SALE?

Will investing the distinction in my home debt forestall me from
having to compensate taxes?

{ 4 comments }

sam21462 February 16, 2011 at 10:20 am

nice of you to not want to pay your taxes … we citizens so appreciate you.

Arbitrage February 16, 2011 at 11:19 am

If it was your primary residence for a couple of years, you get the first 250k profit (500k if married) for free on capital gains. With mortgages, you can only deduct interest payments, and rolling over your property to something of higher value only works for properties that you don’t live in personally.

fasb123r February 16, 2011 at 11:51 am

If that has been your prime residense for the past two years-you don’t have to pay taxes on taht

pvtnvstr February 16, 2011 at 12:03 pm

Any proceeds in excess of the adjusted basis (usually your cost plus improvements) from the sale of a home that is not reinvested in a new home is subject to tax.

Also, there is a one time exemption from this tax (for retirees).

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