What are the Capital Gains Tax in NC?
Had a ton of people call me in the past couple of months, asking me what are the capital gains taxes in NC and do they have to pay them? Now. Let me be clear. I am not a Tax Advisor.
I am not an attorney. I am not a CPA. However, I am a real estate agent.
So if anybody has invested in real estate, in the past year, in our area,
which is Wilmington, North Carolina. Homes, property have gone up on average 29% in the past 12 months.That's absolutely amazing.
It's astonishing that it has gone up that much.
However, if you're thinking about selling your home or property, how is that going to affect you?
What is capital gains in NC? Good question.
It is the profit that you have made on any investment in either a short-term
or long-term period of time, the taxes that you have to pay on that profit is called capital gains tax.
Your short term capital gains tax is if you have owned the property, one year or less. Long-term capital gains tax or two years or less that you’ve owned the property.
Now, how much money do you owe? What does that taxable amount?
That is the say, you paid $150,000 for home and you sold it for $200,000.
So that profit is a $50,000 margin. That is the amount that you'll be taxed on.
How much is that tax? That is a great question. I'm that is based on your filing status.
Meaning, if you're single, divorce, file jointly, also depends on your income.
By now, I'm probably boring you to death. I'm kind of boring myself to death,
but I just want to kind of go over capital gains with you
and that how that affects the sale of your property. How to avoid it is, well not avoid it necessarily but exceptions. To the rule is what that $50,000 margin that we talked about earlier.
If You do $50,000 kitchen renovation, that is considered a Capital Improvement.
So that would affect how much money you owe because it kind of washes each other out.
It is if you are sewing and you have not lived in the house two consecutive years out of five years
and again where I got this information just basically searching the internet,
but if you want to know how this affects the sell your property or if you can sell,
or if it makes sense to sell. So, please call me. Am I a Tax Advisor? No. Am I an attorney? No. Yes,
you can buy. Yes, you can sell.
And yes, I'm here to help.
Please. Call me, email me, text me, any of your questions. (910) 512-4080
I would certainly love to help you figure out the best
way to maximize your personal wealth through homeownership.
I look forward to hearing from you.