New tax

[Issa]

Hi guys,

This is for a friend before she consults her CPA.
She is planning to sell a house that she bought for 80k (long time ago), will try and sell it in 2019 for around 3.5 mil how much approximately she has to pay in federal and state taxes (California) under the new tax.

Ps: she makes 80k a year.

 

[Dont Taz Me Bro]

If she has owned the home and lived in it for more than five years she should not owe any federal tax. I don’t know about California

 

[Issa]

If she has owned the home and lived in it for more than five years she should not owe any federal tax. I don’t know about California

Are you sure? Everyone pays capital gains if you sell a house that you made money off of.

 

[Dont Taz Me Bro]

If she has owned the home and lived in it for more than five years she should not owe any federal tax. I don’t know about California

Are you sure? Everyone pays capital gains if you sell a house that you made money off of.

I guess only the first $250,000 in gains is exempt, unless she is married. Then it’s $500,000

Tax Aspects of Home Ownership: Selling a Home - TurboTax Tax Tips & Videos

 

[Issa]

If she has owned the home and lived in it for more than five years she should not owe any federal tax. I don’t know about California

Are you sure? Everyone pays capital gains if you sell a house that you made money off of.

I guess only the first $250,000 in gains is exempt, unless she is married. Then it’s $500,000

Tax Aspects of Home Ownership: Selling a Home - TurboTax Tax Tips & Videos

Exactly we talking 3.4 mil in capital gains.

 

[BuckToothMoron]

Hi guys,

This is for a friend before she consults her CPA.
She is planning to sell a house that she bought for 80k (long time ago), will try and sell it in 2019 for around 3.5 mil how much approximately she has to pay in federal and state taxes (California) under the new tax.

Ps: she makes 80k a year.

Lots of variables there. She will be liable for capital gains on the difference between the sale price and the purchase price (no more than 20%, so 3.5 mil - 80k = $3.42 mill x .20 = $684,000 tax liability). She could do a 1031 exchange and defer the taxes if she intends to buy another property. Not a bad idea if she needs cash flow. If she could find a property worth 10 mill and get 4% after debt service she could cash flow $400k per year on a 3.5 mil investment.

 

[Issa]

Hi guys,

This is for a friend before she consults her CPA.
She is planning to sell a house that she bought for 80k (long time ago), will try and sell it in 2019 for around 3.5 mil how much approximately she has to pay in federal and state taxes (California) under the new tax.

Ps: she makes 80k a year.

Lots of variables there. She will be liable for capital gains on the difference between the sale price and the purchase price (no more than 20%, so 3.5 mil - 80k = $3.42 mill x .20 = $684,000 tax liability). She could do a 1031 exchange and defer the taxes if she intends to buy another property. Not a bad idea if she needs cash flow. If she could find a property worth 10 mill and get 4% after debt service she could cash flow $400k per year on a 3.5 mil investment.

Thank you, a very good idea indeed.
The new tax code is less if let's she sold a year ago ? Because someone told her she had to pay almost 1 million or so.