Net profit on a house sell
I currently owe around 600k on a house loan. Current Redfin estimates for my house shows as 1.35M . I bought it for 800k , if I sell it for say 1.25M the home sale proceed is 450k. How much of that amount would I get ? I am living at the house for more than 2 years. What could be the typical breakdown of the remaining amount ? This is in Bay Area TC : 320k
None of that matters. You’ll have percentages taken off going to buying and selling agents and paperwork fees. Then you figure how much you paid for the house and subtract that from how much you sell. Your loan is meaningless. So if you’re married you can deduct 500k from taxable income assuming you lived there as your primary residence for over 2 years. Then the remainder is capital gains. So if you bought the house for 600k and sold for 1.25 mill then you deduct 500k and that leaves capital gains tax on 125k which is dependent on your local and state laws and then on your tax situation. So take 75k off for buying and selling fees (6%) and then at least 18,750 off for taxes on the 125k capital gains. So you’re looking at netting 530k but YMMV. It’s a rough estimate.
500k of profit is exempt from tax if you're MARRIED. otherwise only 250k of profit is exempt.
Yeah....Already covered that. it’s 500k if you’re married.
Funny that it's the TurboTax guy asking about taxes on Blind :)
In redfin there is a section that tells you what your proceeds are. Youll lose 6% of the sale price on the agent fees. If CA has an excise tax you pay that on the sale price. If CA has a capital gains tax you lose that on the profit. You dont pay federal capital gains if you lived there two years on the first 250k of profit if single and 500k if married.
Depending on where you live the redfin estimate is just an estimate. A buyer may not want to pay that much and maybe pay 1-1.15
Tough math here...let me see if I can help you do it. Sell for 1.25M Deduct the loan of 600k Total...625k Got it!
Let me make it easy for you : 1,250,000 - 600,000 = 650,000
Right Cisco, because everyone helping sell and buy the house work for free out of the kindness of their hearts. You are beyond unhelpful.