Tax Question About Selling a House

From what you list you won't have to claim anything on your return. The IRS website (www.irs.gov) has a great reference for when you sell your home. Just type "selling my house" in the search box in the upper right and it takes you straight to the link. You can avoid tax on $250,000 ($500,000 married) from the sale of your home if you lived in it for at least 2 of the last 5 yrs. You should keep the sale paper and the purchase papers though in case anything ever comes up--even though you don't have the home anymore. Plus any paperwork you might have for improvements to the home over the years if you have any.

In this case...Seriously go to a tax advisor. We live in Northern KY and pay about $150...its not worth missing something PLUS they can potentionally get you discounts that you didnt know about (moving deductions etc) I know you wont get something in the mail but you will need to report any profitable gains from your previous house(even if you rolled it into your new house) there is a BUNCH of stuff that goes with the buy and sell of a house....OUr refund went form the normal 3k to 7k because of all the deductions we were able to take and our tax advisor was the one who helped us. Dont sweat it..its only going to cost about 150.00 and then you wont worry about.

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You can always call IRS and ask what form fo file.

Hi, A.! Hang in there with your contractions....I think you know for sure if your water breaks!!

But on your question about taxation. IF YOU MADE A PROFIT selling your house (& I think that COULD mean even by getting back any monies you invested in the house), then it used to be that you only had ONE YEAR FROM THE DATE OF SELL IN WHICH TO REINVEST THOSE EARNINGS INTO ANOTHER PROPERTY! OR...then you had to pay taxes on that as income!

If you itemize, you can claim the interest paid on that house. If you don't itemize, you can take the standard deduction and be done with it. It really depends on how much you paid in interest on that house as to what you want to do.

You should not have to pay anything for the money you made off of your house, at least not at the moment....things are 'changing'. If you do your taxes online, it will prompt you to plug in the interest paid that the mortgage company sent to you. It should not be harder than that. Just have the info in front of you to plug in numbers it asks for. We use turbotax.com

the information should be on the papers from selling the house. i believe that the amount is the 'profit' after paying off the mortgage. You claim that as income.

If you use a software like Turbo Tax it walks you step-by-step. If you owned the house you sold less than 2yrs the 'profit' will be taxed as a capital gain. If you owned your previous house more than 2 years it will be taxed as regular income. If I remember correctly.

Oh, and if you purchased a new house, you'll need that paperwork to write-off points paid, taxes paid at closing, etc.

M.