Question

Are capital gain taxes calculated on the gross profit or would it be on the amount we received after deducting the closing costs and brokerage commissions etc.?

Forum|Forum|5 years ago
December 21, 2020
2 replies
0 views

eg: Purchased amount is 500K, stayed for 1 year 1 month, Sold it for 600K, Profit was 100K, but had to pay approx 40K as closing cost and commissions, what will the capital gain tax be calculated on

TurboTax Online

Critter-3

It is on the NET profit not gross ... Sales price - (purchase price + cost of purchase + cost of sale + improvements if any ) = net profit

DoninGA

Employee

600k (-) 40k (-) 500k = 60k Capital Gains

Critter-3

Don't forget the cost to purchase and any improvements if any were made ... folks always miss these items.

N

NCPERSON1

@piyushbk - what was the reason you sold after 13 months? there are some rules (e.g. move for a job) that could reduce / eliminate the capital gains tax on a personal residence.