Hello,
I was a first time home buyer last August (2018). Long story short, I didn't like the home after I bought it.. too much wrong the home inspection didn't uncover. I never moved in.
My realtor will be listing my home for sale tomorrow (07/15/19), I did put a lot of money into it and will make quite a profit (not my original intention).
Is there a way to not pay taxes on a capital gain?
Here are my facts:
paid $52,000 for house.
Total closing costs (including down payment) $15,061.13 (home inspection fee, appraisal, etc..)
Currently I have around $28-30k invested with materials, contractors, etc.. but not including my hundreds of man hours that I obviously do not charge myself a fee for (or pay myself) (and if it came down to that, can I write off my own labor as expense?).
I am a contractor and make around $30k/yr on the books.
I am single and file taxes single.
I never moved into the house and am still living in my apartment (so paying rent and mortgage plus 2 sets of utilities)
I expect to make around $40k± 'profit' after everything is said and done and will use that right away toward either another house or buy some cheap land and buy a 'shelter kit' home... or a different pre-assembled home.
In addition to my previous question, what advice does anyone 'in the know' have for me? I appreciate anything you can offer!
Thanks
*also: since I am so close to a year of actual ownership and then the long term capital gains would apply and in my income bracket I believe I would pay %0 on the sale, at what point does that 'date' apply that I would have a 'sale' listed for income purposes? Date of closing? Date I get my money from the sale? I still owe on the mortgage so I would expect they would get their money first, then funnel me the leftovers; minus the commission, etc.
I could tell you all the layers of networking and the topology of a neighborhood electric grid or backbone (for internet) but this stuff seems to elude me... probably because I've never been through this before..?
