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/u/RealisticAd3919
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We bought a house around one and a half years ago. We bought it for 475K. We paid around 8K for closing costs when we bought it. Right now the house is worth around 525K.
Unfortunately we have to sell the house in the next couple of months due to some unavoidable reason. I know about the capital gain tax exemption when you lived in the house for more than 2 years.Because we are selling it before the 2 year mark, we are not eligible for that exemption right? But considering that we spend 17K remodeling the house and we have to pay around 10% closing cost when selling the house which is around $52,500. I don't think we have any capital gains on this property because the remodeling and closing cost is going to be more than that.
1) So that means we can sell the house right away without waiting to complete the 2 years mark correct?
2) Can we also add the closing cost we paid during the purchase of the house to calculate the cost basis when selling?
3) We don't have money to pay the closing cost of the home sale right now. But we paid the downpayment of $100K when we bought the house. So when we sell the house, they can deduct the money for the closing cost and agent commission from the home equity and sale profit correct? or do we have to have cash to pay the commission and closing costs?
Thanks
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Selling a house less than 2 years of owning it
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Unfortunately we have to sell the house in the next couple of months due to some unavoidable reason. I know about the capital gain tax exemption when you lived in the house for more than 2 years.Because we are selling it before the 2 year mark, we are not eligible for that exemption right? But considering that we spend 17K remodeling the house and we have to pay around 10% closing cost when selling the house which is around $52,500. I don't think we have any capital gains on this property because the remodeling and closing cost is going to be more than that.
1) So that means we can sell the house right away without waiting to complete the 2 years mark correct?
2) Can we also add the closing cost we paid during the purchase of the house to calculate the cost basis when selling?
3) We don't have money to pay the closing cost of the home sale right now. But we paid the downpayment of $100K when we bought the house. So when we sell the house, they can deduct the money for the closing cost and agent commission from the home equity and sale profit correct? or do we have to have cash to pay the commission and closing costs?
Thanks
submitted by /u/RealisticAd3919
[link] [comments]
Selling a house less than 2 years of owning it
Continue reading...