Housing

Taxes upon real estate sale

Cisco bitset
Mar 8

If I make 50k profit upon sale of my house (after paying agents) , do I need to pay federal or state /CA tax? This has been my primary residence from past 2.5 years and I don’t own any other property. Trump has changed tax laws so asking this question. Secondly, considering 50k is tax free do I need to reinvest 50k or it will be taxed?

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  • Verizon XbVH67
    You need to be aware the 50k would be reduced by any upgrades you made to that house. You have a 250,000 lifetime tax free amount. So as you buy /sell the next house /houses each profit amount would be deducted from that remaining 250,000. So for this profit if that's truly the amount then you have 200,000 left as tax free.
    Mar 84
    • Cisco bitset
      OP
      Thank you!
      Mar 8
    • Lawrence Livermore National Lab / Eng
      Ron Swan

      Lawrence Livermore National LabEng

      PRE
      Agilent Technologies, Bank of America
      Ron Swanmore
      This
      Mar 8
    • Intel ngi
      I maybe wrong but i dont think the 250k limit (500k for married) is a lifetime limit but instead can be applied to any primary residence where you have lived 2 out of the last 5 years
      Mar 8
    • Intel 018’!
      Correct ☝️
      Mar 8
  • Intel 018’!
    No
    Mar 82
    • Cisco bitset
      OP
      Thanks, so new tax laws haven’t changed this part
      Mar 8
    • Intel 018’!
      No
      Mar 8

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