Well, both of you are right, but if the gain that can be written off is only $500,000, how do you know if you exceeded that if you never kept track of it?
On Jan 1, 7:21 pm, Kevin Hoctor <[email protected]> wrote: > On Jan 1, 2009, at 8:24 PM, Dan wrote: > > > Yes. In the US at least, the difference between what you sell a home > > for and what you paid for it originally is taxed. The amount you > > originally paid for it is the starting "basis". As you make > > improvements to the home, the cost of those improvements is added to > > the basis. When you sell the home, this revised basis is subtracted > > from the selling price. Example: > > In 2000, you buy the home for $100,000 > > In 2001, you have the driveway paved for $5,000. New basis for the > > house is $105,000. > > In 2009, you sell the house for $150,000. Taxes are due on > > $150,000-105,000 = $45,000. > > Hi Dan, > > Yes but only if this is not your primary residence. You can make up to > $500,000 in profit as a couple selling homes before you have to deal > with paying tax on your profit. > > http://ezinearticles.com/?Tax-Benefits-of-Selling-Your-Home&id=103683 > > Peace, > > Kevin Hoctor > [email protected] > No Thirst Software LLChttp://nothirst.comhttp://kevinhoctor.blogspot.com --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "No Thirst Software User Forum" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/no-thirst-software?hl=en -~----------~----~----~----~------~----~------~--~---
