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wryter2000

(47,277 posts)
Mon Oct 3, 2022, 03:42 PM Oct 2022

Can anyone recommend an online tax advisor?

I have a relatively simple question, I hope. I sold my house for $395,000, and I need to figure out how much capital gains tax I owe on that because I want to pay the IRS ahead of time. The IRS doesn't seem to have anyone to answer questions.

12 replies = new reply since forum marked as read
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Can anyone recommend an online tax advisor? (Original Post) wryter2000 Oct 2022 OP
Are you married? SCantiGOP Oct 2022 #1
Single wryter2000 Oct 2022 #2
I think the range is from 0 to 20% SCantiGOP Oct 2022 #3
I think it also depends on whatever your total income is nitpicker Oct 2022 #4
Right wryter2000 Oct 2022 #6
I am going to list some of the details IbogaProject Oct 2022 #5
Thanks wryter2000 Oct 2022 #7
What did you pay for your house bottomofthehill Oct 2022 #8
Yes, I lived there for 25 years wryter2000 Oct 2022 #9
If you paid $295000 and sold for $395000 bottomofthehill Oct 2022 #10
Thanks wryter2000 Oct 2022 #11
Is not an official number but bottomofthehill Oct 2022 #12

SCantiGOP

(14,155 posts)
1. Are you married?
Mon Oct 3, 2022, 03:52 PM
Oct 2022

No taxes owed on a home sale if you lived in it as your primary residence for at least two years.
$250,000 limit for individual, or $500k for a couple.

wryter2000

(47,277 posts)
2. Single
Mon Oct 3, 2022, 03:57 PM
Oct 2022

I know I owe tax on $145,000, but I don't know how to compute the tax itself. I found something online that, I think, says I have to pay 15% of that.

Thanks.

SCantiGOP

(14,155 posts)
3. I think the range is from 0 to 20%
Mon Oct 3, 2022, 04:01 PM
Oct 2022

Not sure of income levels.
Either check it out online or call a tax adviser, who will of course want to charge you.

nitpicker

(7,153 posts)
4. I think it also depends on whatever your total income is
Mon Oct 3, 2022, 05:05 PM
Oct 2022

For example, if you hit the lottery for a million, your capital gains tax could be 20% instead of 15%.

IbogaProject

(3,518 posts)
5. I am going to list some of the details
Mon Oct 3, 2022, 05:29 PM
Oct 2022

it might be a good year to hire a CPA. They may or may not be busy right now, as the extension deadline to file is October 15.

First you only pay tax on the Gain,
The original cost, plus closing costs are your 'cost basis'.
any major improvements or serious repairs, like new windows, replacing a roof. Smaller jobs like painting or light remodeling don't count.
then from the selling price you deduct any sales commissions, taxes and fees from the sale.
then your gross taxable profit is reduced by $250K if your single. finally there is a slightly graduated scheme in schedule D where the capital gain is taxed.
Estimated is due quarterly, but you only have to prepay 100% of last years liability each quarter, Or 90% of current estimate, which ever is lower.

https://smartasset.com/investing/capital-gains-tax-calculator

https://finance.zacks.com/calculate-capital-gain-selling-house-3027.html

bottomofthehill

(8,771 posts)
8. What did you pay for your house
Mon Oct 3, 2022, 06:21 PM
Oct 2022

And have you lived in it as your primary residence for 2 of the past 5 years.

wryter2000

(47,277 posts)
9. Yes, I lived there for 25 years
Mon Oct 3, 2022, 10:19 PM
Oct 2022

I'm not sure what I paid. I think it was about $295,000. I know when the sale went through, I still owed $227,000 on the mortgage.

On edit: The sale paid off my mortgage, and I got about $165,000 in my bank account after the mortgage was paid.

bottomofthehill

(8,771 posts)
10. If you paid $295000 and sold for $395000
Tue Oct 4, 2022, 01:04 AM
Oct 2022

You owe zero in taxes to the federal government on taxes. You would only have 100,000 in capitol gains at the maximum.

wryter2000

(47,277 posts)
11. Thanks
Tue Oct 4, 2022, 11:25 AM
Oct 2022

I just have to figure out how to find out for sure how much I bought it for. I imagine there are records somewhere. I didn't bring that paperwork when I moved.

bottomofthehill

(8,771 posts)
12. Is not an official number but
Tue Oct 4, 2022, 12:04 PM
Oct 2022

You can go to Zillow.com. Put in your address and they may still have the sales history. It may not be an exact number but close enough for city work.

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