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Do I pay tax when I Sell My House? - https://alnproperties.com/

Are you thinking about the tax consequences of selling your house on Long Island? Whether you are a normal homeowner who lived in the house, or a real estate investor who rented the house to tenants, there are tax benefits at the time of sale that you should be aware of. <br><br>For homeowners looking to sell their principal residence that they have lived in for 2 of the 5 years prior to the sale date, you are likely eligible for up to $500K worth of tax exclusions. <br><br>For real estate investors selling a rental house, there is a part of the tax code that allows you to roll the proceeds from the first house into a new one without paying taxes! View this presentation to learn more!

AndrewNatter
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Do I pay tax when I Sell My House? - https://alnproperties.com/

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  1. Do I pay tax when I Sell My House? ALNProperties.com | (516) 331-1090

  2. ALNProperties.com | (516) 331-1090 • Homeowners are often aware of some of the tax benefits of owning a home, like mortgage interest and property tax deductions. • There are also significant tax benefits for homeowners at the time of the sale. • In this presentation we will reveal two of the most common ways to avoid taxes when selling real estate.

  3. ALNProperties.com | (516) 331-1090 Capital Gains Tax Exclusion • Homeowners who’ve used the home as their principal residence may qualify for the capital gains tax exclusion. • Must have lived in the home for 2 of the 5 years prior to the sale date. • Single homeowners can exclude up to $250,000 of profit. • Married homeowners can exclude up to $500,000 of profit. • There is no limit to how many times the exclusion is used.

  4. ALNProperties.com | (516) 331-1090 Profit Calculation • Profit = Proceeds from sale - deductible closing costs - cost basis • Proceeds from the sale is the sale price of the home • Deductible closing costs are all of the standard transactional costs such as broker commissions, attorney fees etc. • Cost basis is what you paid for the home plus capital expenditures (cost of improvements to the home and not normal maintenance/expenses)

  5. ALNProperties.com | (516) 331-1090 1031 Exchange • Section 1031 of the tax code allows for a tax benefit for real estate investors who do not satisfy the usage criteria for the previously discussed exclusion • Under section 1031 investors may exchange one property for another • Once the initial property is sold, the investor has 45 days to designate up to 3 replacement properties and 6 months to close on one of those properties • When done correctly, the investor can grow their investment tax free, rolling from one property to the next without a limit until they ultimately sell and pay a long term capital gains tax at a relatively low rate

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