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do you pay tax when selling a house?

how much tax is there for selling a $400k house?
Asked By Jill W. | Forest Hills, NY | 1143 views | Selling | Updated 3 years ago
Answers (4)
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Novice
4 Answers
Ryan Edwards

Keller Williams Realty

(117)

If you are referring to Capital Gains Tax, It Depends on what your purchase price was, if this is your primary residence or an investment property and if you qualify for capital gain exclusions (Primary Residence Only). You definitely should consult your tax advisor and possibly a real estate attorney though. Most seasoned realtors will be able to walk you through the calculations and/or exemptions, but we will always give the disclaimer that were are not attorneys or accounts and to consult those licensed professionals.
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Semi-Pro
37 Answers
Irene and Ricky Zhang

Keller Williams Irvine

(107)

Whether you pay taxes when selling a home depends on several factors: your profit, how long you’ve lived in the home, and whether it was your primary residence. The main tax involved is capital gains tax, which applies only if you made a profit on the sale. Fortunately, most homeowners qualify for a major IRS benefit called the Home Sale Exclusion.

If you lived in the property for at least 2 of the last 5 years, you can exclude up to $250,000 of profit (single) or $500,000 (married filing jointly) from federal capital gains tax. This means many sellers—especially long-term Irvine homeowners—end up paying no federal capital gains tax at all. You may owe taxes if your profit exceeds the exemption, if the home is an investment property, or if you don’t meet the residency requirement.

Beyond federal capital gains, other taxes may apply depending on your situation—such as state capital gains tax, depreciation recapture for rentals, or other local tax obligations. There is no automatic tax simply for selling a home; taxes apply only to taxable profit.

As top realtors in Irvine, Irene and Ricky Zhang Real Estate Group help sellers understand potential tax implications and coordinate with your CPA or tax professional so you can make informed decisions. With proper planning, you can minimize taxes and maximize your net proceeds when you sell your home in Irvine.

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Novice
3 Answers
Pamela Dostilio

Coldwell Banker Realty

(37)

In Connecticut sellers pay a conveyance tax. Transfers of residential property in Connecticut are generally subject to real estate conveyance tax paid by the seller. The current graduated tax rates are 0.75 percent of the purchase price for conveyances of $800,000 or less and 1.25 percent on any portion of the consideration in excess of $800,000. In New York, Home sellers can expect to spend 1.425% of the sale price if your property sells for more than $500,000. For properties valued at $500,000 or less, the transfer tax is 1%. Heads up! You can expect to pay a New York State transfer tax as well, which starts at 0.4%.

As far as capital gains tax, it is advisable to speak with your attorney and tax accountant to be properly advised for any and all tax related questions.
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Novice
1 Answer
Michael Miguel

Exp Realty

(30)

Hi Jill, Yes you do. $5,700 on NYC Transfer Tax and NYS Documentary Tax $1,600. If you are looking to get more info on your net walk away please fell free to reach out at 929-543-6488.

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