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How much tax will I have to pay on the money I cleared after selling my condo? How do I calculate it?

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If you are in the United States, Real Estate gains are taxed as capital gains 15% currently but will go up in 2011.

You may be able to exclude $250,000 filing single (500k married filing jointly) if you have lived in the condo 2 out of the last 5 years. See IRS Publication 523 for more information.

You are only taxed on the profit from the sale. If you paid $100,000 and you sell it for $125,000 you would owe capital gains tax on $25,000 if you don't meet the conditions in IRS Publication 523.

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  • "but will go up in 2011." - citation? – JTP - Apologise to Monica Dec 15 '10 at 02:34
  • I linked to the article, click "currently" of course that is subject to change with congress discussing the bill as I write this. – Move More Comments Link To Top Dec 15 '10 at 02:43
  • Capital gains rates are scheduled to go back to 2003 level ~25% but it seems like Congress is likely to pass some type of extension of the Bush era tax cuts which will probably keep capital gains at 15%. – stoj Dec 15 '10 at 13:37
  • Citiation? Pick your poison. http://www.google.com/search?sourceid=chrome&ie=UTF-8&q=tax+rates+2010#sclient=psy&hl=en&tbs=nws:1&q=us+tax+rates+2011&aq=f&aqi=&aql=&oq=&gs_rfai=&pbx=1&fp=55690f3549dbf15a -- right now the top result is this one, it's reasonably informative. http://www.cbsnews.com/8301-503544_162-20025888-503544.html –  Dec 16 '10 at 19:28
  • The cap gain rate was extended, through 2012. The citation linked in this answer reflects this as of 12/18. – JTP - Apologise to Monica Oct 19 '11 at 02:29