Karu stated, In order to get any beneficial tax treatment, the person must have been living in the home for two of the past five years. If thats the case, the first $250,000 of gain is tax exempt, assuming the person is single. For those married filing jointly, the first $500,000 of gain would be exempt.To determine if there is a taxable gain, you have to calculate the cost basis of the home.
He elaborates further; The difference between the selling price of the house less the closing costs of the sale, less the basis that was calculated, is the profit on the sale. If that amount is $250,000 or less, the tax on the transaction is zero. Any gain over $250,000 will be taxed at her applicable capital gains tax rate plus state tax at her applicable rate,
To read the article, please click here.
To speak with and/or set up an interview with Michael Karu, please contact Amy Delman, Amy Delman Public Relations, LLC, 201.563.4614 or amydelmanpr ( @ ) verizon dot net dot
Michael H. Karu, CPA/CFF, is a member of Levine, Jacobs & Company, LLC, a Livingston-based accounting and consulting firm. He is qualified by the Superior Court of New Jersey, Family Part, as an expert witness and as an authority on business valuations, specifically for closely held or family-owned businesses. Additionally, he is a Certified Divorce Mediator and is Certified in Financial Forensics.
Karu received his B.S. degree in Business Administration from The Ohio State University and holds professional memberships in the American Institute of Certified Public Accountants, the AICPA Tax Division and the AICPA Business Valuation, Forensics and Litigation Services Section, as well as the NJ State Society of CPAs. Karu is a published author of numerous articles seen in trade and consumer publications and has been a guest on radio and television shows.
Levine, Jacobs & Company, L.L.C. maintains memberships in the American Institute of Certified Public Accountants and the New Jersey Society of Certified Public Accountants. The firm prides itself on its teamwork abilities where every account receives the talent and expertise of the whole firm.
Amy Delman Public Relations, LLC
amydelmanpr ( @ ) verizon dot net