Anybody know what what are the taxes on the sale of a 2ND home in NY City/State. Thanks?
- jseah114Lv 61 decade agoFavorite Answer
If you are the seller, then the gain on the sale of the home is generally taxable as capital gains. Deoending on how long you have owned the home (less than a year or more than a year), you may pay 20% (maximum tax rate on long term capital gains) or your marginal tax rate (tax rate on short term capital gains). The only way around this is if you had used the home as your principal residence for at least 2 of the previous 5 years, counting back from the date of sale.
For example, if you had owned this home for 5 years or more, used it as your principal residence up until 3 years ago, bought a new house and began using that as your principal residence, and held onto the old house as a vacation home, and now you sold it, you would be able to claim the exemption on the sale.
- spicertaxLv 51 decade ago
Since there is no exemption for second homes like primary homes any gain will be taxable for Federal at 15% and NY at about 5%.