Taxes on selling a home
My aunt is 87 years old
Selling her home for 400,000.00
Does she pay taxes on all of the money?
Terry Says
As a single filer (I presume), she can exclude %250,000 of gains on the sale of her home from taxes. So her cost of the home (presumably many years ago) PLUS any updates or modernization (and I hope she kept records of things like new roof, new kitchen etc ) — all form the basis of her “cost.” Then she will have a long term gain on the difference bertween her cost and sales price.
By the way, if she were to die owning the house, there4 would be NO gain, because the value would be “stepped up” to the value on the date of death. I mention that in case she has a short life expectancy– and a large capital gain!
