I sold my home in 2024 which resulted in a big CG. I am owing IRS and CA six figure tax. Is there anything I can do in remaining days of 2024 to save on this tax on CGs

Forum|Forum|1 year ago
November 25, 2024
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xmasbaby0

Employee

Six figure tax on the sale of your home? You should be seeking local paid professional tax help if you sold a home for so much that your tax is six figures, instead of trying to use TurboTax.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

nmvempatyAuthor

Very interesting answer. There are some very competent users on this forum and I want to hear what they have to say. Dont you worry about me, I may go to the CPA eventually but I want to go to them pre-equipped with as much information as possible.

Thanks for the response anyway!

rjs

Employee

You're not going to get a lot of useful information because you haven't provided any details. Here are some things to consider.

How do you know that your tax will be six figures? Is that just the tax on the gain from selling the home, or is it the tax on all of your income?

Did you take into consideration the federal exclusion of gain for the sale of your home? Do you know if you are eligible for the exclusion of gain? I don't know if California has a similar exclusion.

Was the gain short-term or long-term? If it was long-term, did you properly apply the lower tax rates for long-term capital gain?

How much is the gain from selling your home? How much is the tax? About how much is your other income, besides the gain on your home?

What is your filing status for 2024? Were you the only owner of the home?

How did you calculate the gain? Did you add improvements to the basis? Did you subtract a broker's fee or any other selling expenses? How did you acquire the home that you sold? If you inherited it, did you use the stepped-up basis?

Sell any investments you are holding that will produce losses. The capital losses will offset some of the gain on the home.

If you can make a deductible IRA contribution, that will reduce your tax.

As xmasbaby0 suggested, consult a local tax professional.