Ask Terry Questions Capital Gain

Capital Gain

By Terry Savage on March 29, 2024 | Housing / Real Estate

I am74 years old a widower. Thinking about selling my house and getting a nice Motorhome/toy hauler. My capital gains will most likely be over $55000k. If I (say I buy for $270000) Would I still have to pay taxes on capital gains from the sale of my house???? Thank you Terry

Terry Says

If you’re filing a single return, you can exclude $250,000 of gains. So be sure to correctly document your “cost basis.” It’s not only what you paid for it, but any improvements you made over the years — new roof, furnace, additions, etc. Anything you invested into the house beyond wear and tear repair. The rest is taxed at long term capital gains rates — which depends on your other income. Ask your tax preparer.
Oh, and if you were married filing jointly, you could exclude $500,000. But it may not be worth it just to get the tax break!!



a personal
finance question