Here is a question using hypothetical amounts when understanding the amount considered capital gain when selling real estate before two years. I want to understand, is the number I am calling capital gains correct? And is my rough calculation of my final profit seeming reasonable? Trying to understand if I can walk away without a loss, when selling before two years is up.
Tried to use numbers for easy math below, not to emulate real values.
Capital Gains Calculation
|$500k||closing amount for home sale|
|($10k)||random other fees|
|$140k||my capital gain that can be taxed|
Is $140k the right number for the capital gain, in this case? And, below, does $25k seem logical for final profit?
After Tax Calculation
|($30k)||capital gains tax on above amount (a little over 20%)|
|($15k)||interest paid on mortgage to try and reclaim for breaking even|
|($50k)||down payment from initial transaction to reclaim|
|($20k)||expenses on home improvements|
|$25k||actual profit for me considering my expenses and tax|