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When you sell a house do you have to pay taxes?

Everything you need to know about Capital Gains Tax In Nevada 

If you’re contemplating selling your home, you may be asking the question, when you sell a house, do you have to pay taxes on that? Normally, this kind of sale is taxed via what is commonly known as capital gains tax. Capital gains are profits you or your business makes on any non-inventory asset, such as stocks, bonds, real estate and property. Unfortunately, Uncle Sam wants his share of this too, in the form of capital gains tax. However, if you have lived in the house as your primary residence for at least 2 of the 5 years before the sale, the first $250,000 of your profit is tax-free. Most homeowners do not have to pay capital gains tax on the sale of a house due to the IRS allowing you this exclusion – but there are exceptions, of course. So, generally the short answer is no, at least not capital gains tax, assuming you fall into these categories and qualifications. If you’re deciding to possibly start flipping houses, however, the answer is yes. And unfortunately, capital gains taxes are some of the steepest there are, at 15-20% of your profits. You will, however, pay prorated property taxes up to the date of the sale, as well as something called a real estate transfer tax or a government transfer tax, also known (sometimes) as a title fee. In Las Vegas, the average cost for a median size house’s real estate transfer tax is around $1400, and every city is different. Even within the same state, cities can vary greatly in these amounts. 

Can You Afford To Sell

So there are literally a myriad of reasons why you may need or want to sell your house, from divorce to a job offer in another state. Perhaps you’re facing an inevitable foreclosure due to unforeseen circumstances that have caused you to experience a financial hardship you didn’t expect. (See our post: Can I sell My House Before Foreclosure) Whatever the case may be, there are many things to consider, such as can you afford to sell? The fact of the matter is, although you may escape capital gains tax, there are many other costs involved with selling your house. The average major home repair costs around $5,000, and a remodeling project can easily cost $10-15,000 or more. You can count on spending a decent chunk on getting your home ready for the dreaded inspection, as well as for showing it to prospective buyers. On top of this, you’re going to need a good real estate agent. It’s just the smartest and easiest choice, especially when you’re going to be so busy with everything else that needs to be done. The average realtor’s commission is 6% of the sale price, and in Nevada the average home value is around $312,000. This makes $18,720 in commission you’ll be paying your agent. Then you have to figure in closing costs, another 1-3% which totals $3,127-$9,380 using this sale price. The average 2-3 bedroom home is going to cost you another approximately $1,500 to move. And don’t forget about the taxes we did mention above, at an average of $1,400. When you stop to add up all of these costs, the question may become, can you afford to sell?

Enticing Alternative

However, you may be interested in the topic because you need to sell, not necessarily because you want to, but because that is the only thing you can do in the current situation you’re in or the decision you’ve committed to. Time may be of the essence as well, causing you great amounts of stress and anxiety. The thought of all of these things seems overwhelming at best, and you’re not sure how you’re going to do it. If you find yourself in this quandary, you’ll be happy to learn that there is an enticing alternative. It would even eliminate nearly all of the seemingly inevitable costs listed above, and you wouldn’t have to worry about repairs or an inspection. You will be able to sell very quickly, and you don’t need a real estate agent or anything. You’ll take a bit of a hit on the price, but considering all that you won’t be paying, the peace of mind itself is worth it! Sellyourhousefastlv is a respected and trusted cash home buyer for Las Vegas and surrounding areas, one that you can count on to have integrity and fairness. They have a simple and very fast process that affords you a no obligation cash offer at no cost to you. You just fill out a short form on their website’s home page, and someone will be in touch with you soon to schedule a time to come visit the property. At this time, you will be given a cash offer that you can take or leave, no questions asked. It will be at a competitive price with cash buyers and they do not charge any hidden fees or commissions. In fact, they pay all associated fees or costs associated with the sale of your house! Plus, they take houses in any condition, so you never have to worry about inspections or repairs. If you need to sell your house fast for cash, why wouldn’t you at least give them a call? What do you have to lose?

In Conclusion

In conclusion, hopefully you have gotten the answer to the question of when you sell a house, do you have to pay taxes, and possibly now have some further information as well. Life is full of ups and downs, and just when one door closes is when you see that two more doors are now open. Our journey can take multiple twists and turns, and we sometimes can’t see what’s ahead or which direction we need to go. All anyone can do is to make the best decisions possible with the information they do have. Remember, we’re all on this crazy ride together, and the more hardships we get through, the more we will appreciate the good times we’re also sure to enjoy.
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