Capital Gains Tax
My hubby and I have sold 2 houses, neither one did we make over $250,000. I will be moving next spring, from Illinois to the San Antonio area. With what my realtor told me what my home is worth now compared to what we purchased it for, there is no way I will make over $250,000 on the sale of this house. I am a recent widow so this really scares me when I go to sell. I’m afraid that I’m not reading the information from the internet correctly. Am I safe from this tax?
Terry Says
You and your spouse — assuming you are still married — can each exclude $250,000 in capital gains from the sale of your PERSONAL RESIDENCE — the place where you resided for the last two years. So that shouldn’t be an issue. BUT you said you sold TWO houses. Unless each of you claimed one house (thus $250,000 exemption) as your separate personal residence, you may have to pay a capital gains tax on the sale of the second property– assuming it was a vacation home, or a rental property. Please check with your accountant to get your correct status. But the capital gains tax is the lowest tax you will ever pay! And any gain would be diminished by any improvements you made in the property over the years (remodeling, new roof, etc) so I hope you kept good records!
