Situations Where There Is Tax To Pay On Sale Of Home
You may have to pay tax on the sale of your home if any of the following is true:
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If you file jointly, and you both meet the ownership and "live in" requirements, you will have to
pay some tax only if the "tax gain" on the home is more than $500,000.
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If you file jointly and only one of you meets the ownership and "live in" requirements, tax is triggered if the tax gain is
more than $250,000.
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If you file jointly and neither of you meets the "ownership" and "live in" requirements, tax is triggered if there is any tax gain at all.
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If you do not file a joint return, and you meet the ownership and "live in" requirements, tax is triggered for
you if your share of the tax gain exceeds $250,000. (This applies both before and after the divorce.)
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If you do not file a joint return, and you do not meet the ownershp and "live in" requirements, tax
is triggered for you if there is any tax gain at all. (This applies both before and after the divorce.)
Click
here
for a description of the ownership and "live in" requirements.
Click
here
for an explanation of what we mean by "Tax gain."
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