Capitol gains tax?
If my wife and I sell our house to buy an RV with the profits and become full timers, are the profits still subject to capitol gains or is the purchase of the RV considered a home?
Forum Discussion
TripleE wrote:
Having just sold a house (that was located in Calif if that means anything) and bought another house in Ohio, I can tell you on Federal taxes buying something new means nothing for capital gains. That was the way it worked a number of years ago. Now you sell your house, take the selling price from the original purchase, if the difference is greater than $500,000 (for a couple) you pay capital gains on the amount over $500,000. You can subtract some things like sales commissions and some major upgrade or repair costs, your tax person can tell you exactly what is deductible. It used to be that you could only take the capital gains exception once, now you take it on each house sale. Hope this helps.
Thanks for the first hand report. We won't be over $500k so that's good to know. I know it changes year to year but I'm just researching right now and listening to different experiences so I have some idea how it works and what questions to ask when and if we decided to do something this big.
