Say you bought a house for $200,000 and sold two years later for $300,000. I'm wondering how much of the $100,000 profit do you actually get to keep.
I'm sure some has to go to taxes, the agents, etc. but I have no idea what the standard percentages are. Of course any number you give would be an
approximation but any sort of ballpark figure would be very helpful.
When selling a house, how much of the profit can you keep?
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 syncdafied |
When selling a house, how much of the profit can you keep? |
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Posts: 9686 (07/02/2009 7:33 PM) |
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lacheysgurl |
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Posts: 6870 (07/02/2009 7:35 PM) |
it really depends....you will have to pay closing costs, taxes and broker fees. It's really hard to say....
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forever121young |
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Posts: 11341 (07/02/2009 7:35 PM) |
I believe it's about 5% to the agent (depending on the contract). The profit is probably considered income and would be taxed as such.
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syncdafied |
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Posts: 9687 (07/02/2009 7:37 PM) |
Would you say you'd get to keep half? More than half? More than 75%?
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jbcox2002 |
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Posts: 6234 (07/02/2009 7:40 PM) |
There are a lot of factors to consider.... you usually have to pay taxes on the profit you make, however there are a lot of "loop holes" you can
use if you lived in the home yourself. I'd talk to a tax adviser
I have seen all variances from really low to really high (10%+). I personally charge 6% commission. There are also some agency's out there that will
provide very limited services and charge a much lower commission.
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bigredmunkeebutt |
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Posts: 13805 (07/02/2009 7:41 PM) |
I could be wrong, but I think that as long as you use 20% of the profit as a down payment on another primary residence within the next 2 years, you don't
have to pay any capitol gains tax.
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jbcox2002 |
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Posts: 6235 (07/02/2009 7:41 PM) |
syncdafied wrote:No way to say without knowing the full story/situation. It isn't standard and can vary drastically |
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syncdafied |
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Posts: 9688 (07/02/2009 8:05 PM) |
I don't have a story or any other details to add. I'm buying a condo, and selling won't be on my mind for at least half a decade.
So I was just wondering approximately how much one gets to keep when selling property. Is it common for it to be 25% or less of the profit? Half? 75% or more? I'm not expecting a precise, accurate number. Just saying which quartile it's usually in would be more than helpful. |
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lacheysgurl |
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Posts: 6878 (07/02/2009 8:07 PM) |
keep in mind sometimes it's hard to sell a condo unless it's in really good shape....
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bluegrass60062 |
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Posts: 16982 (07/02/2009 8:11 PM) |
seems like it would depend so much on how of a profit (if any) you actually sell it for. If a lot of the closing costs are based on the total selling price
(e.g. 6% to jbcox on $300,000 is $18,000 right there) that's gonna make a difference if you can only sell it for $210,000.
and these days, it seems dangerous to assume you'll sell be able to sell for more than you paid. |
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