Posted by
Kristi Teague

If I sell my home for more than I owe, but less than what I paid, will I pay taxes on the difference?

If I sell my home for more than I owe, but less than I paid for it, will I pay taxes on the difference once I pay off the mortgage?

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If I sell my home for more than I owe, but less than what I paid, will I pay taxes on the difference?

By Kristi Teague   
Posted on May 20, 2021 in Topic: Home Selling
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If I sell my home for more than I owe, but less than I paid for it, will I pay taxes on the difference once I pay off the mortgage?
Status: Open
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Asked by: Consumer
Posted: 1 month ago
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Diamond
Joe Applewhite
about 1 month ago
I'm afraid I'm out of my league on this one. This a tax man question. My accountant handles all these. I'm happy to put you in touch with him if you'd like.


about 1 month ago
Gold
James Meador
about 4 weeks ago
Hi Kristi!

You may or may not have to pay taxes on your capital gains when you sell your house. If you fit the following criteria, you should not have to pay taxes on your capital gains. In Texas, you are allowed to make up to $250,000 in profit if you file your taxes individually or up to $500,000 in profit if you file your taxes jointly (or as head of household) without paying capital gains taxes, as long as you meet all of the following criteria:

-The property must be your primary residence
-You must have owned the house for at least 2 years
-You must have lived in the house for 2 of the last 5 years
-You cannot have claimed exemption from capital gains on another property in the last two years

If you meet all these criteria, you should not have to pay taxes on your capital gains. However, you WILL have to pay capital gains tax on amounts OVER $250,000 if filing individually or $500,000 filing jointly even if you do meet all these criteria.

Also, the capital gains tax doesn't have anything to do with how much you owe on the property, it has to do with how much you paid for the property when you bought it. If you are selling for less than you paid, you should not have to pay taxes on the difference, but I would also suggest you speak with a tax professional!

I hope this helps! If you would like to talk more about this or about selling your home, please call me or send me a text! My wife and I would love to help you and now is a GREAT time to sell!

James Meador and Vanessa Esma
The Stellar Home Group
Re/Max 5 Star Realty
281-450-7199


about 4 weeks ago
Bronze
Brandy Campbell
about 2 weeks ago
Hi!

You do not have to pay taxes other than the prorated amount at closing for the year you sell. If you make more than $250,000 on the sale, then you will pay capital gains tax.


about 2 weeks ago
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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