Real Estate Agents or someone who has sold a house

[doeboy11]

If I sell my home for x amount, do I have to buy another house for same x amount? Ex. Sell for $200000 buy for $200000. If so what if I have two houses but I want to down size, can I put some in the bank for future?


TIA

You can Pm me if you want.

[TheHammer]

If you sell a house you can do whatever in the heck you want with any equity, or profit money you want!! You can roll it into another property, but it in the bank or whatever you want, as long as it’s profit.

If you owe 200K and sell for 200K you didnt make any money. If you 100K and sell for 200K you just made yourself 100K not counting taxes or realtor fees.

[Diamond07]

Are you trying to ask about capital gains?

[ClearcreekDC]

Im an agent. Is this a tax related question?

[Hix]

You’re exempt up to $250k (500k married) on capital gains tax if you’ve owed the home for 2 years I believe. There may be more exemptions I’m not sure. Ask a professional [emoji2]


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[2good2Btru]

You’re exempt up to $250k (500k married) on capital gains tax if you’ve owed the home for 2 years I believe. There may be more exemptions I’m not sure. Ask a professional [emoji2]


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What about for land? Asking for a friend


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[RR 314]

No. If you sell a house for $200K your next one must be at least $400K. It’s the rule of double. Ask your wife. :-)

[HogHunter34]

If you sell a house you can do whatever in the heck you want with any equity, or profit money you want!! You can roll it into another property, but it in the bank or whatever you want, as long as it’s profit.

If you owe 200K and sell for 200K you didnt make any money. If you 100K and sell for 200K you just made yourself 100K not counting taxes or realtor fees.

Not exactly if he has owned it as a permanent residence less than 2 years. Then capital gains are owed

[doeboy11]

My mother in law fell in Nov. 2020, due to this we (wife and I) moved in to take are of her. Daughter took over our house and is paying rent. MIL just passed in Jan. so we will have to sell the house we live in now (in about year or two hopefully) and split 3 ways. Plan on moving closer to grandchildren (out of state). If we figured out everything we will have close to $200000 to buy land and build house. Found land fairly cheap and thinking of doing small house, all for around $150000. Make long story..... I think that is what I am asking about is Capital Gains. So thank you I think I know the answer.

Now if my daughter decides to move we have another house to sell, value close to $350k but we will already have moved. So when that happens I guess we would need a lawyer?

[TheHammer]

Not exactly if he has owned it as a permanent residence less than 2 years. Then capital gains are owed

True that. That’s why I said taxes and realtor fees

[bobc]

No. If you sell a house for $200K your next one must be at least $400K. It’s the rule of double. Ask your wife. :-)

Awesome. And so **** true.


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[RWB]

That is a little more complicated. If i understand and your MIL had a will and passed the house to your wife and 2 other heirs then you will inherit the current market value of the house. I think you will owe taxs on the difference between current market value and sell price if you sell for over current value. Your current home you should not owe any tax on if you have owned it more than 2 years.

[RWB]

I should have added. If your MIL home is not handled properly then you could end up with the value of the home at the time your MIL purchased it. If she bought it a long time ago that could make the tax bill much higher.

[JSki]

That is a little more complicated. If i understand and your MIL had a will and passed the house to your wife and 2 other heirs then you will inherit the current market value of the house. I think you will owe taxs on the difference between current market value and sell price if you sell for over current value. Your current home you should not owe any tax on if you have owned it more than 2 years.

This. Inherited property you take the market value when you inherit, so if you sell it shortly thereafter you should have minimum, if any, capital gains. The other house you may still be able to claim as your primary residence, but you want to be careful about your time frame for eligibility as your primary residence, it would need to be your residence for at least 2 of the last 5 years.

[HogHunter34]

True that. That’s why I said taxes and realtor fees

If he’s lived there at least 2 years & profit on house is below $250k, then it’s tax exempt. Only realtor fees if involved