Selling new home within 3 years of purchase

[terminator_desi]

One of my friend's bought a home in midwest for 520k in 2020 and is listing it for sale now for 560k as he is moving to a different state..He is saying he is still going to make 40k profit.Is it possible considering seller agents fees which is 3-6% of home price ,listing fees etc.Can we still be in profit if we sell home within 5 years of purchase considering taxes, buying expenses etc? 

[rmJU72]

If primary home, then there is tax exemption of atleast 250k.

but frankly if u have locked in a good mortgage rate, keep the house as a rental. 

 

https://www.irs.gov/taxtopics/tc701

If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse. Publication 523, Selling Your Home provides rules and worksheets. Topic No. 409 covers general capital gain and loss information.

[SaradaChinnodu]

45 minutes ago, terminator_desi said:

One of my friend's bought a home in midwest for 520k in 2020 and is listing it for sale now for 560k as he is moving to a different state..He is saying he is still going to make 40k profit.Is it possible considering seller agents fees which is 3-6% of home price ,listing fees etc.Can we still be in profit if we sell home within 5 years of purchase considering taxes, buying expenses etc? 

Don't think your friend will be making 40k profit bro

he must be making whatever left after taking out seller and buyer agents commission and any other repairs coming out of inspection unless he's found a buyer without middleman who is willing to buy the home as is ORRR if he gets an offer over listed price of 560K.

 

[ARYA]

He will loose 5-8% of the selling price - for buyer + seller commisions and closing costs..

[neneno1]

Don’t forget the mortgage he paid for last 3 years also includes principal. So he must have made atleast 36k back in the original purchase price just as part of monthly mortgage and also the taxes he would have saved for last 3 years

[Chaandhini]

26 minutes ago, ARYA said:

He will loose 5-8% of the selling price - for buyer + seller commisions and closing costs..

Forgot to put in mortgage he paid for last 3 years profit and loss in property taxes

[nenu_meeku_telusa]

8 minutes ago, Chaandhini said:

Forgot to put in mortgage he paid for last 3 years profit and loss in property taxes

[Galactus]

realtor commissions tho chana pothayi kaasulu, why doesn't he rent and let some property manager handle it?

lot of tax benefits for rentals, there will be some risk though but have proper insurance and let property manager handle the hard stuff for a few bucks..

[bavagaru]

One shouldn't sell property within 5 years until and unless he is making good profilt.

[sarfaroshichekka]

Just now, bavagaru said:

One shouldn't sell property within 5 years until and unless he is making good profilt.

Lawnzoduka ne Amma ni kukkal 10ga Australia lo ne pellani 10gina siggu raledara chekka makelowde

[bavagaru]

3 minutes ago, sarfaroshichekka said:

Lawnzoduka ne Amma ni kukkal 10ga Australia lo ne pellani 10gina siggu raledara chekka makelowde

Same to you ra na Laujakodaka

[jalsa01]

10 hours ago, terminator_desi said:

One of my friend's bought a home in midwest for 520k in 2020 and is listing it for sale now for 560k as he is moving to a different state..He is saying he is still going to make 40k profit.Is it possible considering seller agents fees which is 3-6% of home price ,listing fees etc.Can we still be in profit if we sell home within 5 years of purchase considering taxes, buying expenses etc? 

intha bull market lo just 40k enti man he should sekll for 700+

[sulabhcomplexswatkat]

2 minutes ago, jalsa01 said:

intha bull market lo just 40k enti man he should sekll for 700+

Ekkada undi va Bull market maa @Swatkat gadi lekka picchollu unnaru ikkada

[sarfaroshichekka]

54 minutes ago, bavagaru said:

Same to you ra na Laujakodaka

Same to your endi ra lawnzodaka Aus lo ne pellani kukkal 10ging ra makelowda 

[bavagaru]

46 minutes ago, sarfaroshichekka said:

Same to your endi ra lawnzodaka Aus lo ne pellani kukkal 10ging ra makelowda 

nee @mm@ and Fell@m iddaru naathone unnaru, naa moggani notlo puvvulo marchi marchi pettukuntunnaru, will chat later ra na munjakodaka