Buz writes:
If I bought a house for $5000 in 1960, becoming worth $50000 today and I sold it, the gubm't claims I've made $45000 when in fact I've made nothing.
Hi, Buz--wrong again!
Most people who bought a house in 1960 or thereabouts and sell it now are selling their home. Such primary residence sales are essentially exempt from federal capital gains and income taxes.
quote:
Capital gains home-sale tax break a boon for owners
By Kay Bell Bankrate.com
What's the best tax break available to Jane and John Q. Public? If they're homeowners, it's selling their house.
Homeowners already know the many tax breaks that Uncle Sam offers, most notably mortgage interest and property tax deductions. Well, he also has good tax news for home sellers: Most of them won't owe the Internal Revenue Service a single dime.
When you sell your primary residence, you can make up to $250,000 in profit if you're a single owner, twice that if you're married, and not owe any capital gains taxes.
Of course, if you are selling rental or other investment property, your gains would be taxable in some form, though there are lots of loopholes.
The gubmint is actually pretty sweet to folks who make money moving those kinds of assets around.
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