When I sell my home will the equity be taxed, assuming I don't "reinvest" the profit I make into another home?
Answers:
If you have 1) owned & lived in your home for two of the last five years (does not have to be continuous) AND 2) during the 2-year period ending on the date of the sale, neither you nor your spouse excluded gain from the sale of another home, you can exclude up to $250,000 of the gain or "equity" ($500,000 if married and file jointly) from taxable income.
It will depend on the state you have the house in ... If you lived in it or used it as a rental/investment property... How long you owned it ... Lots of variables in that question.. Would be best to talk to you tax adviser
It depends on the state you live in. Here in NC, if you live in your home for over 2 years, you won't get taxed on your gain, assuming it's your primary residence. But it does vary from state to state, you should ask your real estate agent, tax accountant or an attorney.
No tax event if you lived in the house 2 out of the last five years.
You are allowed to make $500,000 before taxes. that is the Fed. Different states may take a bite of your gain.
If it is the home you live in, only if it exceeds $250,000. If it is an investment property, you should shelter yourself from the capital gains tax by doing a 1031 exchange.
No, if you have lived at least 2 years in that property.
If not, it is considere an investment as if you bought it just to make a profit.
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