Replies to post #198400 on Monk's Den

[BDkeg]

yes you would still need to count that as taxable income as buying a house isn't a writeoff...however the taxes/interest you pay on the home you are able to writeoff

capital gains goes off of your marginal income tax rate as well as the state capital gains income tax rate.

example...

if i had grossed over 375k or so in a given year i would need to pay 35% capital gains + 5% for the state of colorado which comes out to around 40% total taxes on that gain.

hope that helps.

[Stockbert]

Yes, you do. Buying a house has no effect on taxes. Taking a mortgate has an effect on taxes from the year you buy on, in that you can write the interest off. If you buy it outright it's no different than buying a T-shirt where your taxes are concerned. When you sell, you pay taxes on the profits over 250K or 500K depending on marital status. So, you'll have to pay income taxes on the money you make.