How much will I owe?!

Question

On a home owned for 8 months where I mortgaged 185k put in 30k and then sell for 300k, presuming there are 25k in fees.

What will I owe in taxes?!?

Stevan Franeta · Answer

Ashish makes a good point, section 121, I believe, refers to partial exclusion on the gain of your primary home even if you live there for less then 2 years.

22% effective tax rate may be a little high but in the ball park...I would estimated 18% to 20%.

Matthew Grebeta · Answer

@Lynnette E.

I am married filing jointly. I make 70k at my normal job and then 60k from this. 50k of that sale profit would fall under the 22% tax bracket correct?

Matthew Grebeta · Answer

@Ashish Acharya

Oh and yes this is currently my primary residence. I have not looked into the 121 would I qualify for that?

Matthew Grebeta · Answer

@Ashish Acharya

A little more info would be that I make 70k per year.

We desire to sell to get a more solid financial position before continuing with our investing.

We figured now would be best being there there is no certainty that really very high prices where I live in Fl will continue.

Ashish Acharya · Answer

Is this your primary residence? Why are you selling? You might qualify for 121 exceptions if you could share more detail.

If not, the gain of around 60k will be taxed at ordinary income rate as it will be short term cap gain. Find your marginal tax rate and multiply your gain.

Lynnette E. · Answer

It will be what your short term capitol gains rate it if you sell it within a year of buying it.  You will be much better off if you can hold it for a year.  If you hold it for exactly a year and a day it will change the taxes to your long term capitol gains rate.

Carl C. · Answer

Not a specialist but I'd assume whatever your short term capital gains rate is.