Posted on: 06th Oct, 2009 02:03 pm
my parents are sellingtheir farm and moving into a house. They will have money left over after the purchase of the house. What will they need to do in order to lower the amount they will have to pay in taxes on the money they do not reinvest in the home.. They are exempt from property taxes as my dad is !00% disabled.
Hi shelia,
If there is a profit from the sale of the property, they would be responsible for the capital gains taxes. However, there are certain exemptions in case of capital gains taxes. To know about it, check out the given page:
http://www.mortgagefit.com/know-how/capitalgainstax.html#exemption
Your best option would be to consult a CPA and take his opinion whether or not your parents would be able to offset the capital gains taxes by investing in the property.
If there is a profit from the sale of the property, they would be responsible for the capital gains taxes. However, there are certain exemptions in case of capital gains taxes. To know about it, check out the given page:
http://www.mortgagefit.com/know-how/capitalgainstax.html#exemption
Your best option would be to consult a CPA and take his opinion whether or not your parents would be able to offset the capital gains taxes by investing in the property.