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About Ray Beggs
Expertise
I have been in the Real Estate business for over 20 years. I am available to answer your questions regarding buying a home or selling your home and also any questions you may have regarding the loan process. (Purchase or refinance)

Experience
Real Estate Sales and Financing

Organizations
SoCal MLS, National Association of Realtors, California Association of Realtors, Pacific West Association of Realtors.

You are here: Experts > Shopping > Home Buying/Selling > Real Estate Home Mortgages > selling

Real Estate Home Mortgages - selling

Expert: Ray Beggs - 4/16/2007

Question
i am a first time buyer and want to put up my house after only being here for a year..how does the recapture tax and other tax penalties work and have you ever heard of anyone selling after being on the property for only a year..im on a 30 year fixed rate with KHC and have been making payments on time..bought the house for 95k and want to sell it for 110k ..i put hardwood floors in it comes with ADT privacy fence and gate off street parking appliances and home warranty and the house is in perfect condition specially the roof the inspector couln't find anything wrong with the house..i love the house but i feel secluded i thought that i would like to live in an erea that feels like the country but im starting to feel lonely out here friends barely visit because i live so far out..it's in a great neighborhood but i want to find something closer to friends and family...

Answer
Hello,

Well, I'm not a tax expert so I'll have to refer you to an accountant for the tax questions but I can tell you that there are many people who sell their homes after a short period of time after buying them. Your lender won't care about it as long as they get their money back, which they will when you sell.

You will have capital gains tax on whatever profit you'll make from the sale. You will also have selling fees. (Agents, escrow, title, recording fees, etc.) You should also check with your current lender and ask if there are any penalties (called prepayment penalties) for paying your loan off early.

Best of luck,

Ray

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About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here