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  1. #1
    JenaV Guest

    Selling a House question.

    When selling a secondary home...

    Sale price $100k
    Payoff $50k
    ------------------
    Balance $50k

    Is the balance $50k subject to taxes? If yes, what's the percentage or is it the whole $100k taxed?

  2. #2
    Join Date
    Jul 2007
    Posts
    558

    Re: Selling a House question.

    It depends ...

    What payoff amount is doesn't matter, it is what you paid for the house.

    It also matters how long you have owned the house and whether or not you have lived in it for two of the past five years.

    Some good info at http://www.smartmoney.com/tax/homefa...story=homesale

  3. 08-06-2007, 07:46 AM

    Reason
    wrong advice

  4. #3
    JenaV Guest

    Re: Selling a House question.

    Thank you, it's been an investment property for the last 5yrs.
    I'm looking into 1031 exchange, 45 days to re-invest the remaining funds.

    Which brings up a new question:
    To avoid Capital Gains, can the seller invest the funds into the Primary home's Mortgage balance, to avoid the taxes?

    Or does it need to be a New different property???

  5. #4
    Join Date
    Jul 2007
    Posts
    558

    Re: Selling a House question.

    Quote Originally Posted by JenaV
    Thank you, it's been an investment property for the last 5yrs.
    I'm looking into 1031 exchange, 45 days to re-invest the remaining funds.

    Which brings up a new question:
    To avoid Capital Gains, can the seller invest the funds into the Primary home's Mortgage balance, to avoid the taxes?

    Or does it need to be a New different property???
    No, you can't "invest" your profits in paying off another mortgage. You have to actually purchase another property.

  6. #5
    JenaV Guest

    Re: Selling a House question.

    That's what I thought :(

  7. #6
    Join Date
    Apr 2008
    Location
    California
    Posts
    6

    Re: Selling a House question.

    You can find lots of useful information about 1031 exchanges at The Fox Real Estate Report, as well as up-to-date info about real estate and mortgage scams.

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