Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
BCM
User Panel

Posted: 1/30/2011 2:51:26 PM EDT
Just curious, if I put a down payment on a house, and then sell my current house, and the profit is equal to my down payment, is that counted the same as if I sold my house first and used the profit for a down payment?

hope that made sense.
basically I can afford to put a down payment on a new home without selling the old. just wanted to make sure I can still get the tax break from profits off the old since that amount of money went into the new, just not the exact money that came out.
Link Posted: 1/31/2011 5:19:01 AM EDT
[#1]
Those are the old rules; they changed in 1997.  As long as the house is your primary residence, and it's been your primary residence for two of the last five years, you can exclude up to $250k ($500k if married and  you file jointly) in capital gains taxes.

http://www.bankrate.com/finance/real-estate/capital-gains-home-sale-tax-break-a-boon-for-owners-1.aspx
Link Posted: 1/31/2011 5:25:31 AM EDT
[#2]
thanks. did not know it changed. that helps a great deal.
Close Join Our Mail List to Stay Up To Date! Win a FREE Membership!

Sign up for the ARFCOM weekly newsletter and be entered to win a free ARFCOM membership. One new winner* is announced every week!

You will receive an email every Friday morning featuring the latest chatter from the hottest topics, breaking news surrounding legislation, as well as exclusive deals only available to ARFCOM email subscribers.


By signing up you agree to our User Agreement. *Must have a registered ARFCOM account to win.
Top Top