Foreclosure capital gains tax How much do i have to pay for $200k?
I bought my home for $485k and it is now worth around $285k. I will have to pay capital gains on it probably. How much out of $200k would it be? I live in california.
- LandlordLv 71 decade agoFavorite Answer
You will not owe any capital gains. You will owe income tax, based on whatever tax bracket you will be in after you add that to your normal income, but no gains.
- StephenWeinsteinLv 71 decade ago
Nothing, because a "gain" is an increase in the worth of the property. Because it went down, there is no gain, only a loss. There is no tax on losses.
However, if the bank forgives or cancels part or all of the debt still owed, you will have to pay tax on the forgiven or canceled debt, but not capital gains tax.
- hyreLv 44 years ago
If the lender forgives component to the loan very own loan it somewhat is going to become earnings to the vendor. earnings from discharge of indebtedness applies to all forgiven money owed, no longer basically homes. in case you owed $5,000 on credit playing cards (no longer which incorporate pastime) and could no longer pay then confident the economic employer to take 0.5 of that as a freelance, you're able to $2,500 in earnings.
- troLv 71 decade ago
are you selling it ?
loss on sale of residence is not declared
if you are forgiven some of the mortgage, that could possibly be income to you when you receive the 1099 C