We are selling our home and it's a seller's market right now: Big demand, little supply.

[CTyankee]

We got a big shock from a realtor: we are moving into a retirement apartment (Masonicare) and selling at a great time. We got very, very lucky. A little over 30 years ago we paid about $155,000 for 3 BR, 1 1/2 baths prewar (1941) colonial in a very nice but middle class neighborhood in the Westville section of New Haven. It is on the other side of town from the Yale campus, so I thought we were probably not going to get a lot of money for it. It turns out the market has an insufficient supply and a great demand. It is near a very upscale private school and within walking distance of an Orthodox shull (sp.?) and meets the needs of families that want those attributes.

Now I'm worried about taxes on capital gains. Our tax guy has to go over the figures and I wonder how that is going to work out.

I could barely believe my ears when I learned this.

[WhiteTara]

1. I know that if you as a single person (I am) you

pay taxes on more than $250,000. I'm not sure of the tax exposure for a married couple. This is from our CPA

[CTyankee]

2. Do we get a break on account of our ages (mid 80s)?

[WhiteTara]

3. I'm not sure about that we are both in 70's - 80s

[Thunderbeast]

7. No.

[Thunderbeast]

6. $500,000

Reduced by costs of capital improvements...not to be confused with maintenance.

[WhiteTara]

8. the capital improvements are

reducing the amount of the deduction? If you make $100,000 of improvements, the deduction is $400,000?

[Thunderbeast]

9. No...

Capital gains is reduced by the improvements.

Bought house: 100,000
Sold house. 750,000
Gross gain. 650,000
Capital Improvements: 100,000
Gain. 550,000
Exclusion (Married) 500,000
Taxable Gain. 50,000

Tax @ 15% 7,500

Remember, Your Medicare Part A deduction from your Social Security benefit check(s) will be adjusted based on your Adjusted Gross Income (AGI) which will include the $50,000. That additional premium will be used for the year following the sale.

[WhiteTara]

10. thank you

I didn't think that was possible.

[Wonder Why]

4. Taxes are what we pay for the services provided by government. Legitimate taxes are the type of tax

that falls fairly on the rich and poor alike with fairly, IMHO meaning those that make the most, pay the most.

I don't believe in worrying about or trying to avoid taxes although, if there is a deduction allowed, I generally take it.

I suggest you ask a tax advisor since there may be local or state taxes in addition to federal ones that might differ in exemptions and deductions for their their taxes.

As far as knowing you have to pay taxes, I'd worry less about it than you apparently do. Just be thrilled at the increase in value which gives you more to spend and not how much in taxes you have to pay. Your remaining life on this earth will be happier, if not richer.

If the very rich in this country acted this way, there would be a lot more money for the people that need it. Instead, like Musk who is worth $500B and who cannot spend even a small portion of it for others, we have an ever accumulation of wealth to a smaller percentage of the population and more suffering for the poor.

I am intending no criticism of you. Just a suggestion that accepting legitimate taxes is the best plan you can have.

[CTyankee]

5. Yes, of course. we pay our taxes on gains and are pretty lucky. We get a comfortable place to live and are secure.

And we have a trusted tax accountant who will see to our needs as best he can.
And I don't have to make dinner every night (one meal comes free with our rent, reduced rate on other meals or we prepare our own as we will have a small kitchen (but all new appliances, as we got a newly renovated apartment, lucky us!).