Legal Question in Real Estate Law in New York
capital gains tax
A married couple buys a house for $700,000.00. but the house is only in the husband's name. They put down $350,000.00 and they take out a $350,000.00 mortgage. They sell the house in six years for $1,200,000.00. with a real estate agent that only charges 3%. Are the capital gains figuredin this way?: $1,200,000.00 minus $350,000.00 (downpayment) minus $350,000.00 (mortgage) minus $500,000.00 (marital exemption) minus $36,000.00 (real estate commission. Thanks!
2 Answers from Attorneys
Re: capital gains tax
Exemption is calculated as follows:
Sales price $1,200,000
Less expenses of sale 50,000
Adjusted sales price 1,150,000
Cost 700,000
Gain 450,000
Husband's Exemption 250,000
Taxable Gain 200,000
There is no exemption for the wife since she is not on the deed.
Re: capital gains tax
this should be posted to "tax and taxation" as there are issues involving capital gains and expenses that you are mixing together. This is a rtax and not really a real etstate issue in my opinion.
Good Luck
RRG
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