Return to the Buying and Selling Homes Forum | Post a Follow-Up

 o
Capitol Gains on 2nd Home

Posted by stir_fryi (My Page) on
Thu, Feb 5, 09 at 18:31

Anyone know what the capitol gains tax rate would be for a vacation home purchased in 1998?

I am confused if it is 15% or 25%


Follow-Up Postings:

 o
RE: Capitol Gains on 2nd Home

Long term capital gains is 15%.


 o
RE: Capitol Gains on 2nd Home

that's right


 o
RE: Capitol Gains on 2nd Home

Two years ago my brother, sister, and myself sold the house we inherited from our mother. Is that consider my first home sold? We are ready to sell the house we are currently living in.


 o
RE: Capitol Gains on 2nd Home

Sallon2008

No to qualify for this tax break your first house would be the one you have owned and lived in for at least 24 months. The house you sold with your sibling was inherited. With the step up in value you received no capital gains would be due unless you sold it for more than that appraised value. Unless you sold it for more that the limits for capital gains. If I remember correctly the limits are $500,000.00 for a married couple and $250,000.00 for singles.


 o
RE: Capitol Gains on 2nd Home

"Two years ago my brother, sister, and myself sold the house we inherited from our mother. Is that consider my first home sold? We are ready to sell the house we are currently living in."

Why would it matter if it was a first house?
The inherited house was not eligible for the 2 of 5 year exclusion unless you lived in it as a principal residence.

You received a stepped up cost basis on the house on the date of death (or alternate evaluation date) and the estate payed any taxes due.
Only if you then sold the house for more than the value had when you inherited it is there any tax due.

As long as you have lived in a house for at least 2 of the previous 5 years you get a $250,000 per person ($500,000 for a married couple) exclusion for any profit on the sale of a house.
You can only use this every 2 years though.


 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!


Return to the Buying and Selling Homes Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.


Learn more about in-text links on this page here