What should I expect to pay taxes on a house I am selling?

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I am selling my house for 20 grand. I have a buyer and he’s paying cash. I know I am going to have to pay taxes on this but i can’t figure out how much. Our tax here in Maryland is 6%. I just wonder if there’s anything else to it besides the 6%?
I have never lived in it. It’s been in my name under 6 months but was willed to me 22 years ago.

6 Comments
  1. Reply
    Steve D
    July 21, 2011 at 2:41 am

    There are no sales taxes on houses – what you will have to pay are the seller’s share of the closing costs. The title company or lawyer should be able to estimate the costs for you.

  2. Reply
    OC
    July 21, 2011 at 3:07 am

    you might have to pay the tax on the gain from sale, but it depends on how long you have lived in the house prior to selling it, and if you have used it as a personal residence. Same goes for the possible loss deduction.

  3. Reply
    123456789
    July 21, 2011 at 3:48 am

    See Publication 523:

    http://www.irs.gov/publications/p523/ar02.html#en_US_publink100027560

    As long as you meet all of the requirements, you can exclude up to 250K of the gain (proceeds less cost).

    This is for income/capital gains tax.

    OC, you cannot deduct loss on a personal residence. It’s never deductible.

  4. Reply
    honey
    July 21, 2011 at 4:39 am

    it depends on how long you have kept it and on whether it was used as your personal residence.

  5. Reply
    baseball freak
    July 21, 2011 at 4:43 am

    a lot

  6. Reply
    Judy
    July 21, 2011 at 4:50 am

    Are you talking about sales tax when you say 6%? You don’t pay sales tax on a house sale. You might very possibly owe MD income tax on part or all of the sale price, but not sales tax.

    If you inherited the house, you’ll pay federal income tax on any appreciation since you inherited it – if you don’t have an appraisal from then, this can be tricky.

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