Capital gains on a home sale
If I own my home outright and sell it for $400,000, my understanding the first 250,000 profit is ok. What if I buy an RV with the remaining hundred and $150,000 profit is that considered a rollover and do another purchase of a home?
Terry Says
In the “olden days” you could roll over your gains. That provision no longer exists. So any excess over the allowable $250,000 exclusion is taxed at capital gain rates — which depend on your other income. Be sure to add in to your cost basis any inprovements you made to the home over the years — remodeling, new roof etc. That raises your “cost basis”.
