What do you do with proceeds from house sale?
- Keep Copies of the Closing and Settlement Papers.
- Keep Proof of Improvements and Prior Purchases.
- Stash Your Cash in a Good Money Market Fund.
- Double-Check the Tax Rules for Excluding Tax on House Sale Profits.
- Cast a Broad Net When You Consider Your Next Home.
- Remember That Renting Can Be a Fine Strategy.
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Regarding this, how long do I have to reinvest proceeds from the sale of a house?
In order to take advantage of this tax loophole, you'll need to reinvest the proceeds from your home's sale into the purchase of another "qualifying" property. This reinvestment must be made quickly: If you wait longer than 45 days before purchasing a new property, you won't qualify for the tax break.
Also Know, where should I invest my money from sale of property? "Under section 54EC, one can invest the amount of capital gains earned from the sale of a long-term land or building, in the NHAI bonds or bonds issued by rural electrification corporation of India within six months from the date of transfer," says Archit Gupta, Founder and CEO, Cleartax.
Besides, how much do you keep when you sell your house?
Realtor's commission fees The real estate commission is usually the biggest fee a seller pays — 5 percent to 6 percent of the sale price. So, if you sell your house for $250,000, you could end up paying $15,000 in commissions. The commission is split between the seller's real estate agent and the buyer's agent.
Do you have to buy another house to avoid capital gains tax?
Yes. The IRS allows you skim up to $250,000 off the profit of a primary residence when calculating capital gains tax. That amount jumps to $500,000, if you're married. You haven't taken a capital gains exclusion for any other property sold at least two years before this current sale.