Because of my low income, would I not be subject to capital gains taxes if I sell my home?

I have a house in California worth $2,000,000. I have been in the home for more than 30 years. The original cost was $70,000. I spent $50,000 on repairs and upgrades. My total income with Social Security and a small annuity payment is less than $30,000 a year. I have no other income or investments. Because of my low income, would I fall be subject to 0 percent capital gains taxes? Is there a rule determining how large the capital gain is because the home is a personal residence?

Social Security, Investing, Annuities, Real Estate
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September 2018

Hello 

   There is no age exemption. There is a $250,000 exemption for singles and $500,000 exemption for couples. You will owe taxes on the $2,000,000 minus any cost to sell your home (commissions, repairs, closting cost) minus your previous improvements minus the $250,000/$500,000 exemption. You taxes will be a bit based on the information you provided.

Kimberly J. Howard, CFP 

September 2018
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