Legal Question in Tax Law in New Jersey

How much tax do I pay on my home sale

I am a widowed male since 1998 and I want to sell my home in NJ. My deceased wife has her name with mine on the deed. I want to know if my deduction is going to be $500,000.00 or $250,000.00 allowed to be claimed for the sale? The house is valued above $500,000.00.

Thank you,

John


Asked on 3/25/05, 8:07 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: How much tax do I pay on my home sale

Since you are a widower, you will be filing as a single taxpayer. The first $250,000 of "profit", not sales price, is exempt from tax. To calculate the profit, you start with your original cost for the property, add any improvements over the years and your closing costs. This is your "basis". You deduct your basis from the selling price to determine your profit. You only pay tax if the profit exceeds $250,000.

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Answered on 3/26/05, 4:19 pm


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