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Post by chang on May 23, 2022 16:13:46 GMT
There is so much contradictory information on the internet about this. Does anyone know - if you have lived in a house for 45 years, as your primary residence, are there any capital gains taxes on the sale? (Assume the original purchase price was around $60,000 and the current sales price is $800-900K).
Different question: If the house is sold after the owner’s death, is the cost basis stepped up (as with stocks) so that no capital gains tax is payable?
TIA.
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Post by Deleted on May 23, 2022 16:24:01 GMT
There is so much contradictory information on the internet about this. Does anyone know - if you have lived in a house for 45 years, as your primary residence, are there any capital gains taxes on the sale? (Assume the original purchase price was around $60,000 and the current sales price is $800-900K). If the house is sold after the owner’s death, is the cost basis stepped up (as with stocks) so that no capital gains tax is payable? TIA. |
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Post by Chahta on May 23, 2022 16:50:27 GMT
There is so much contradictory information on the internet about this. Does anyone know - if you have lived in a house for 45 years, as your primary residence, are there any capital gains taxes on the sale? (Assume the original purchase price was around $60,000 and the current sales price is $800-900K). If the house is sold after the owner’s death, is the cost basis stepped up (as with stocks) so that no capital gains tax is payable? TIA. Stepped up basis upon inheritance. $250k/$500k for single/married folks in CG are exempt for original owners. Years ago that was a lot but not so much these days. |
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Post by Deleted on May 23, 2022 17:32:02 GMT
The Fair Market Value (FMV) of the house at the date of the owner's death is determined and will become the stepped-up cost basis of house. If the house sells above the FMV, there is a taxable gain.
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Post by fishingrod on May 23, 2022 20:02:10 GMT
There are eligibility requirements for 250,000/500,000 exclusion on sale.
This is a good read.
Stepped up cost basis at death for beneficiaries for now.
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Post by Chahta on May 23, 2022 22:13:17 GMT
It's kind of funny. Sell your appreciated house when you are alive and possibly get taxed. Will it to someone that gets a step-up and they could possibly pay no tax. Not real fair tax code.
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