Capital Gains

[c33m00r]

I’m a 79-year-old widow on fixed SS income. We paid $210,000 for our 2-story home in 1995. I own it free and clear. I want to sell it, invest the capital gains, move to a rental in Maui where my daughter lives. The current market value is $700,000. Less $210,000 = $490,000 of which $250,000 is tax exempt, as I understand it. So I will then owe capital gains tax on $240,000, correct? Is there any way for me to avoid paying it?

[MinhT1 · Accepted solution]

Yes, you are correct.

You will have to pay taxes on your long-term capital gain of $240k, which is taxed at 15% ($36k). There is no way to avoid paying it.

[medicigregnick]

Ask a CPA. There may be a medical reason that you need to move that would help you.