Legal Question in Real Estate Law in Illinois
selling a home and taxes
I live in Illinois. My sister lives in
Colorado. We own a home in
Indiana where our father lived for a
few years. He is now in a nursing
home and we are selling the home.
Will the IRS want any tax money
from this sale? We will about break
even on the sale. No profit made,
maybe a small loss.
3 Answers from Attorneys
Re: selling a home and taxes
Based on what limited information you provided, it sounds like you will probably be o.k., but you need to know what you paid for the house, closing costs and how much you put into it and compare that to the sale proceeds.
Re: selling a home and taxes
You should talk to an accountant re the rules for capital gains tax. From what you told me, it doesn't sound like you'll owe any capital gains tax, but talk to an accountant!
Re: selling a home and taxes
there is a complicated formula. You need to determine the basis, less capital expenses, less closing costs. capital gains tax is 15% of the net (plus or minus other items)
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