Capital Gains Tax

[Unregistered]

1) What information would we need from our tax returns to calculate our capital gains tax liability from selling our house? (I ran my daycare for 25 yrs.)

2) Would you recommend that we leave this calculation up to a CPA to handle for us rather than doing it ourselves?

Thank you!

[TomCopeland]

sale of home

There are two potential taxes when you sell your home.
First - You will owe capital gains taxes on any profit on the sale of your home that is above $250,000 (if single) or $500,000 (if married).
Second - You will owe taxes on all the home depreciation you claimed, or were entitle to claim, after 1997. To find out how much home depreciation you did claim over the years, you must look back at Form 8829 Business Use of Your Home for each year you were in business. Hopefully, you saved these forms.

I've written a chapter in my Tax Workbook and Organizer about the sale of the home. In your case, I would recommend using a tax professional to help you figure out your taxes.