How much capital gains tax is due on the sale of a home if most income comes from Social Security?
My 94 year old widowed mother wants to sell her house. Her only income aside from Social Security is a 0/month retirement check from a job she had years ago.
How much, if any, capital gains tax will she have to pay? The house cost less than K when built in 1953, and she is being offered 5,000.
(1)1 Comments
Sorted by latest first Latest Oldest Best
What it means is that almost all of the taxable income will be capital gains, i.e.: 20% tax rate (+medicare on the gains above 0K). It will also probably drag the Social Security payments into the taxable income (at least partially), but most of the tax would be for the house.
I suggest checking with a licensed tax adviser (EA or a CPA licensed in your state) for a more precise simulation, and also to explore potential exemptions, deductions and potentially capitalize-able expenses. Check into capitalized renovations and other capital expenses on the house, primary residence exclusion, potentially stepped up basis since her husband passed away as @mhoran_psprep mentioned, etc etc. A decent professional adviser will definitely help you identify all the points.
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2025 All Rights reserved.