How can you avoid to pay taxes on the profit of your home sale?
Home Mortgage
Johanna B asked:
Will investing the profit in my home mortgage prevent me from
having to pay taxes?
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Will investing the profit in my home mortgage prevent me from
having to pay taxes?
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February 25th, 2009 at 1:25 pm
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nice of you to not want to pay your taxes … we citizens so appreciate you.
February 27th, 2009 at 9:48 am
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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.
February 27th, 2009 at 11:23 pm
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If that has been your prime residense for the past two years-you don’t have to pay taxes on taht
February 28th, 2009 at 2:30 pm
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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).