Tax Question-Selling primary home

[Kay Ferdous]

Quick tax question..

My friend lives in staten Island.. Lived there his whole life 30+ years.  He's look to sell his house which is all paid off for about 700K and then buy another house all cash in Jersey.  What are the TAX implication of move like that..

[Ryan Detig]

@Kay Ferdous  Note I am not a CPA.  What I do understand is that he will have to pay capital gains tax on any profits over 250k if married and 500k if single.  Calculating profits is the tricky part.  Profits are calculated as the sales price minus the basis.  The basis is the purchase price plus any repairs he has made to the property over the last 30 years.  Hopefully he documented that well because that could make a big difference in the bases and ultimately in how much taxes he has to pay.  If he is married I would assume it would be very close to him not having to pay any capital gains taxes as the basis of the property has to be close to 200k.  Don't forget you get to take all closing costs and costs associated with selling the house out of the sales price.  Ultimately though talk to a tax professional as I am not.