I am selling my residence after 13yrs of living in it. I purchased it first $325,000 and am selling it for $450,000. What is my estimated tax...

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Customer

I am selling my residence after 13yrs of living in it. I purchased it first $325,000 and am selling it for $450,000. What is my estimated tax liability?

Last updated 1/11/2017

Paul Goddard

Tax Preparer

Hello, I would be happy to help you.

 

Posted 1/11/2017

Paul Goddard

Tax Preparer

You are allowed to exclude $250,000 of capital gain from your taxable income if you are single and $500,000 if you are married.  

 

Since your gain is $125,000, you will need to report the sale on your tax return but you won't owe any taxes relating to the sale.  

Posted 1/11/2017

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