Taxes upon real estate sale
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 XbVH67 Mar 8, 2019
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.
Cisco bitset OP Mar 8, 2019
Thank you!
Lawrence Livermore National Lab Ron Swan Mar 8, 2019
This
No
Thanks, so new tax laws haven’t changed this part
No