Will You Owe Capital Gains When Selling Your South Central Vermont Home
Something to consider when selling your home is the Capital Gains ramifications. Will you owe Uncle Sam money after the sale of your South Central Vermont home? Capital Gains are calculated as the difference between what you paid for your property and what you sell it for. Here is how you calculate your Capital Gains.
Calculating Capital Gains
(+) PURCHASE PRICE – Price paid for property
(+) COST OF PURCHASE – Transfer fees, attorney fees, inspections
(+) COST OF SALE – Repairs, commissions, attorney fees, inspections
(+) COST OF IMPROVEMENT – Room additions, deck, for example, though not replacing existing
(=) ADJUSTED COST BASIS OF YOUR HOME
(-) AMOUNT YOU SELL YOUR HOME
(=) CAPITAL GAIN
A Special Real Estate Exemption for Capital Gains