How much tax will I have to pay on the money I cleared after selling my condo? How do I calculate it?
If you are in the United States, Real Estate gains are taxed as capital gains 15% currently but will go up in 2011.
You may be able to exclude $250,000 filing single (500k married filing jointly) if you have lived in the condo 2 out of the last 5 years. See IRS Publication 523 for more information.
You are only taxed on the profit from the sale. If you paid $100,000 and you sell it for $125,000 you would owe capital gains tax on $25,000 if you don't meet the conditions in IRS Publication 523.