Short term gain taxes
I m trying to sell my house that I bought 3 months ago for $300,000. I spent approx 40,000 for repairs and remodeling the kitchen and bathrooms. Now if I sell for 390,000 to 400,000. How much I would have to pay the taxes and is there any way I can save those taxes by reinvesting the money or by any other means. by Ar1120_405_422 from Anaheim, California. May 21st 2013
Dave Metsker (DaveMetsker)
#35 ranked lender in Oregon - 2,318 contributions
Your adjusted basis is $340,000 (cost+repairs). If you sell for $390,000, with 8% ($31,200) closing costs, and cost of funds (borrowed or your own) estimated at 3% ($340,000 for 6 months@6%) or $10,200, you would have a possible gain of $8,600. If you sell by June 30, you still have 6 months to reinvest the profit. You may have excess expenses on your next project on December 31, 2013, that will cause your gain to roll over into 2014.
J.D. Peck (TheJDPeckLendingTeam)
#44 ranked lender in Colorado - 82 contributions
You would need to speak with your CPA regarding Capital Gains tax.
Steven Cook (stcookmortgage@gmail.com)
#37 ranked lender in Washington - 256 contributions
As two of the other commenters noted this is a question for your tax accountant or CPA. There are too many variables on this to determine without their careful review. If you are looking for mortgage financing for your next home, we have offices in CA and would be happy to work with you on getting that financing set up.
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
If you turn it around to buy another property, you can do a 1031 Exchange = Zero Tax. We lend in MN and WI only. www.MetzlerMortgage.com
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