Buying or Selling a Home/sold my house

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Question
I recently sold my home in NC. I made some profit from the sale. I have moved to VA for a new job. I have been looking for a home, however to no avail! I'm waiting for the market to ease.
Q: Will i need to claim the money that i made on my house in NC this year? what are some options?

Answer
Hi Mike.

Congratulations on your new job! 'Sorry to read your new house hunt is not going well. Hopefully, you have enlisted a Realtor and are not 'winging-it'...

Please note: I am a Realtor and not a tax professional. I recommend professional assistance with your tax questions. I can only give the benefit of my experience / understanding. And, that is - you will need to claim the proceeds of your sale on this year's taxes. However, for 2013, if you meet the federal criteria, you will be able to avoid up to 250k in gains if single or 500k in gain if you are married. You will most likely also have to file taxes for both states.

You will find answers to your questions at this link, just copy and paste if link not activated:  http://www.bankrate.com/search/results.aspx?q=capital+gains

Unless you had A LOT of gain you took away, you should be fine. And, unless NC has a special tax break I'm not familiar with, as I am in CA, buying another home right away would not make a difference to your taxable event. You may be thinking of a 1031 exchange which is used with investment property and must be declared at the time of selling the original property - 'like for like property' and has time limits attached to it, etc.

Again, congrats on the new job, Mike! 'Hope this has helped...

My best,
Kathryn

P.S. Just in case: Taxable gain is after profit. For example - if you are single and made 295k profit on your home, your federally taxed gain would be 295k-250k = 45k  

Buying or Selling a Home

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Kathryn Hisert; Realtor

Expertise

Everyone deserves an answer! My rounded background will provide you with information beyond ‘just’ buying and selling. I can answer questions regarding short sales, foreclosures, deed-in-lieu, home staging, vintage home related concerns, most mortgage related questions, and divorcing couples’ housing options. I am a research oriented individual who strongly believes in connecting all the dots and providing as much, or as little, information and communication my clients want or need. My expertise is in San Diego and Santa Clara Counties.

Experience

After 25+ years in the Financial industry, Sales and Marketing, I came to the real estate industry as a mortgage loan agent. From 2002 to 2010 I was my clients' Realtor and loan agent. Since 06/10 I have been strictly a Realtor.

Organizations
N. San Diego County Assoc. of Realtors California Assoc. of Realtors National Association of Realtors

Education/Credentials
CDPE (Certified Distressed Property Expert) CREDS (Certified Real Estate Divorce Specialist)

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