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Buying or Selling a Home/Gain from the sell of a house

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Expert: - 10/26/2006


Question
My husband and I are currently trying to sell our home.  We hopefully will make about $30K off of the sell.  Once we sell, we are going to start building a home.  Do we have to use that money to put directly into the new house or can we use it to pay off loans we already have?  

Answer
If you have lived in your home for 24 of the previous 60 months upon the sale, you may forgo payment of tax on any capital gains up to $500,000 for a married couple who file their tax return jointly ($250,000 for a single person).

So you may do as you wish with any funds you receive from the sale of your home, Erin. However, if you have loans on the property, upon your sale you will be paying off the lenders of those loans. You receive the balance.

I do wish you well.

Dick Dennis            dixiedee13@aol.com  

Buying or Selling a Home

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Dick Dennis

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With more than 41 years as a real estate broker, I can solve most any problem presented. If I can`t, I do my research. Problems with mortgages, trust deeds, foreclosures, odd ways of conveying titles. Most any good Realtor can answer questions satisfactorily, but I answer questions that most cannot. Also, ask about my hard-copy newsletter, The Landed Gentry. It can also be sent to you via PDF.

Experience

Solving real estate problems for 37 years.

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National Association of Realtors

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Publishes The Landed Gentry, guest writer in Who's Who in Creative Real Estate, First Tuesday, Financial Freedom and many newspapers

Education/Credentials
e-Pro Realtor, Certified Distressed Property Expert, Who's Who in Creative Real Estate

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