Capital Gains on sale

[puggerson]

Hello, we recently listed and sold a home I purchased in 2008.

When I married my husband 5 years ago, we moved out but couldn't sell it. A friend ended up doing a lease to own with me. He's only been covering payments-I've made $0  a month on this. He's since decided to sell, thus all the profit will be going to his pocket but my name is still the one on this loan. He is giving me the amt I will owe in gains tax from his proceeds--but we can't figure out how much that will be.

How much capital gains tax will I owe? I keep getting diff figures--from 5k to 15k...

details:

paid 82,500 in 08

didn't keep receipts on work done so won't be deducting anything.

real estate commission - 9780

Sales Price: 163,000

Income: married filing jointly - 45k-50k household with 4 kids (my income varies slightly as I'm an independent contractor)

[JohnB5677]

Using only the information you've given.

Sale Price: $163,000

Selling expenses: - $9,780

Net Proceeds: $153,220

Original purchase price: $82,500

Net Capital Gain: 153,220 - 82,500 = $70,720

This will be a long term capital gain and will not be taxed over 15%.

These costs associated with the original purchase can be included in your cost basis when selling your home.

• Tax stamps,
• Attorney fees,
• Title insurance,
• Title search and
• Document preparation