Bought our home for $970,000, sold it for $1,025,000 after owning it for a 1 year. After closing costs, our net is still $970,000. Is that still considered a gain?
We're a married couple looking to sell our home after 1 year but less than 2 years. Highest tax bracket.
03296
1 Best answer
fanfare
Level 15
Jun 4, 2019 10:04:36 PM
that's a wash.
No Gain, no capital gains tax.
3 Replies
fanfare
Level 15
Jun 4, 2019 10:04:36 PM
that's a wash.
No Gain, no capital gains tax.
fanfare
Level 15
Jun 4, 2019 10:04:37 PM
It is certainly unlikely that the numbers will be identical, so you will have a small gain or loss to report. Any gain is not eligible for exclusion.
Hal_Al
Level 15
Jun 4, 2019 10:04:38 PM
A gain is reportable and potentially taxable. A loss (on a home) is not deductible. If you got a form 1099-S, the sale will have to be reported on your tax return, to avoid an IRS inquiry.