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?
- Verizon XbVH67You 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.