Posted on: 08th Mar, 2010 08:20 am
My wife and I are of retirement age and in the process of down-sizing our life style. We have found a smaller home we are interested in, but have not yet sold our current home. What are the tax implications (IRS) of buying the other house before we sell our current home (the home is listed for sale). Assume that income/financial capability is not an issue.
Thanks in advance
:?:
Thanks in advance
:?:
Hi gbconsta,
You can definitely buy a new home while retaining the current home. There should not be a major tax implication until you sell the existing home. If you sell the home at a profit, you will be liable to pay capital gains tax on the amount of the profit you make. But until you sell the home you do not make any profit and hence, you do not have to pay any tax to the IRS.
You can definitely buy a new home while retaining the current home. There should not be a major tax implication until you sell the existing home. If you sell the home at a profit, you will be liable to pay capital gains tax on the amount of the profit you make. But until you sell the home you do not make any profit and hence, you do not have to pay any tax to the IRS.