RE: How much of that gain will they have to fork over in taxes when the IRS demands its cut?
I believe this rule is from the Clinton era and has not been changed — the first $500,000 of your profit from selling your own home is TAX FREE. Anything above that is taxable.
re: I believe this rule is from the Clinton era and has not been changed — the first $500,000 of your profit from selling your own home is TAX FREE. Anything above that is taxable.
I don’t think that is correct. It has to be far less. The fact that people who short-sale their homes or whose homes are foreclosed on are still hit with taxes on the non-existent “profit” they make tells me otherwise.
RE: How much of that gain will they have to fork over in taxes when the IRS demands its cut?
I believe there are long term and short term capital gains. Short term are taxed as income.