Capital Gains Question

[Tyler Parker]

Hi BP! My question is if I sell my house will I have to pay capital gains tax? From what I have read so far I don't think I will have to. What I have read online is if your profit on your house is under $250,000 you don't have to pay capital gains.

I purchased the house for $185,000 and will be able to sell the house for $290,000. So at that sale price, would I be hit with capital gains but from what I have read I can deduct my renovation and closing costs. 

Sale price $290,000

Rehab -$35,000

Clossing -$20,000

_____________________________________

= $235,000

So if at $235,000 would I be under the limit for capital gains as a single guy? Also This is my personal residence and I have lived here for over 2 years now.

Thank You

Sincerely, Tyler Parker 

[Natalie Kolodij]

It $250 of GAINS not of sale price. 

So 290-185= 105k of gains (without accounting for any repairs )

If this is your primary home you've lived in 2 of the past 2 years you should be fine