Comments on: How does capital gains tax work on home sales? What is the percent in WA state?

By: grob

grob — Fri, 02 Jan 2009 23:33:24 +0000

Washington state doesn’t have an income tax so you would be fine there…You will pay various state and local sales and transfer taxes though when you sell.

Also, there is an expemption at the federal level as long as you have not sold for more — $250,000 if single or $500,000–than you purchased the home for… Other things like, say, basis come into play also.

By: Wayne Z

Wayne Z — Thu, 01 Jan 2009 08:59:12 +0000

The gain or loss is calculated on the selling price less the basis less sales expenses.

Basis is the original cost plus improvements less depreciation that was claimed (or should have been claimed).

This is a rather complex transaction that should be left to a professional to calculate. You may have a gain or loss once you crunch all the numbers. If you have gain, you are only taxed on the net gain; not the gross.