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-   -   If a person sells a house, and gets all cash, (no mortgage owed,) is that money considered income? (http://www.CashHash.com/showthread.php?t=10913)

Cam 08-14-2011 09:06 PM

If a person sells a house, and gets all cash, (no mortgage owed,) is that money considered income?
 

Christina 08-14-2011 09:06 PM

If a person sells a house, and gets all cash, (no mortgage owed,) is that money considered income?
 
Yes

Huntsman 08-14-2011 09:06 PM

If a person sells a house, and gets all cash, (no mortgage owed,) is that money considered income?
 
No. Not sure why other answers said yes.
You just put the money in the bank - it's yours
Capital gains tax is only if you make more than $250,000 in profit
The amount over that 250K will be taxable
(if its your primary residence)

Landlord 08-14-2011 09:06 PM

If a person sells a house, and gets all cash, (no mortgage owed,) is that money considered income?
 
No, it is capital gains, you pay capital gains tax.

Char 08-14-2011 09:06 PM

If a person sells a house, and gets all cash, (no mortgage owed,) is that money considered income?
 
Whether it's cash or otherwise, not in most cases.

Most taxpayers are no longer required to pay Personal Income Taxes on the gain on the sale of their principal residence, under a law that took effect Jan.1, 1998.

Generally, homeowners who owned and used their home as their principal residence for at least two of the five years prior to the date of sale will qualify for the exclusion on a sale of their home.

However, taxpayers are required to report the gain if they sold their home within two years of selling their previous residence. If the sale of their home was required by unforeseen circumstances (change of employment status or health), they could exclude the gain.

LisaL 08-14-2011 09:06 PM

If a person sells a house, and gets all cash, (no mortgage owed,) is that money considered income?
 
Char is right but there is one more criteria. If you made less than a $250,000 profit (single person) or $500,000 (joint with surviving spouse filing) there are no capital gains to pay. See IRS publication 523 for more answers. And this is not a one time capital gain exemption as in the past...unless Congress changes it.