How To Pay House Tax Online?

If my dad sell's his house to us, how much capital gains tax, inheritance tax etc do we have to pay?

• my dad is going to sell the house to me, my brother, and my two cousin's for $667,000 and the four of us are going to take out a $500,000 loan for this. how much taxes is everybody going to have to pay for doing this. my dad should have a $500,000 tax shelter because this has been his primary for over 30 years and he files taxes jointly with his wife (my mom). but someone told me he only has a $250,000 tax shelter because my mom's name is not on the house. and someone's else told me he has no tax shelter because he's selling it to us and we're his family. i'm confuse can anyone help?

• Answer:

  You won't have to pay any capital gains or inheritance tax. Capital gains tax is for when you sell something for more than you bought it for. Inheritance tax is for when he dies, and you inherit it. Your father will only have to pay capital gains on over $500,000 profit, because it is his primary house, he files jointly, and he has lived there for the past 5 years. Here it is a little better: Under the current Capital Gains Exclusion rule, home sellers can claim $250,000 of home sale profits tax-free ($500,000 if filing jointly) provided they physically lived in the home for the last 5 years. This sounds like your dad fits the restrictions - 5 years and filing jointly, so he gets a free $500,000 exclusion. Note that this is profit - if he paid $200,000 for the house initially, and sold it for $700,000, then he won't owe any capital gains because of the $500,000 exclusion.