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I've been living off an inheritance and haven't had income. I want to sell my home in California, buy 2 properties in N Carolina and rent one of them. I have lived here just over 1 year - how much capital gains will I pay?
Answer

Hi there! I can't tell you exactly how much tax you'll owe, because it really depends on how much of a gain you have from the sale. Your gain is calculated by subtracting your basis in the property from the sales price.

If you purchased the property yourself, your basis will be what you paid to acquire the home. If the home is inherited, your basis will be the fair market value at the time of the benefactors death.

You can also subtract any "costs of sale" from your gain, such as commissions or title fees. Capital gains tax is 15% in most cases.

No answer given yet!

Sarah York, EA

Sarah is a staff writer at Keeper Tax and has her Enrolled Agent license with the IRS. Her work has been featured in Business Insider, Money Under 30, Best Life, GOBankingRates, and Shopify. She has nearly a decade of public accounting experience, and has worked with clients in a wide range of industries, including oil and gas, manufacturing, real estate, wholesale and retail, finance, and ecommerce. Sarah has extensive experience offering strategic tax planning at the state and federal level. During her time in industry, she handled tax returns for C Corps, S corps, partnerships, nonprofits, and sole proprietorships. Sarah is a member of the National Association of Enrolled Agents (NAEA) and maintains her continuing education requirements by completing over 30 hours of tax training every year. In her spare time, she is a devoted cat mom and enjoys hiking, baking, and overwatering her houseplants.

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