RILiving Mobile App »
 
My RILiving  

Already have an account? Login Now

Don’t have an account? Buyers and sellers can save their searches and listings. Create an Account

Featured Showcase Property
View All
Photos 360 View
$365,000 Mortgage Calculator
17 COGGESHALL AV
Bristol, RI / 02809
MLS# 1113978
Type: Single Family
Neighborhood: COGGESHALL AVE.
Beds: 3 Beds
Baths: 1 Full / 1 Half
Living Area: 1,560 sq. ft.
Lot Size: 10,000 sq. ft.
Listed by: Nicki Ann Tyska The Mello Group, Inc.
Office: 508-640-0505
Photos
$577,000 Mortgage Calculator
1200 HOPE ST
Bristol, RI / 02809
MLS# 1069726
Type: Single Family
Neighborhood: ROCKWELL
Beds: 5 Beds
Baths: 0 Full / 0 Half
Living Area: 5,300 sq. ft.
Lot Size: 52,272 sq. ft.
Listed by: Dory Skemp Coldwell Banker Res. Brokerage
Office: 401-247-0202
360 View New Construction
$345,900 Mortgage Calculator
78 - LOT18 TEAKWOOD DRIVE WEST .
Coventry, RI / 02816
MLS# 1120988
Type: Single Family
Neighborhood: THE OAKS
Beds: 3 Beds
Baths: 2 Full / 1 Half
Living Area: 1,782 sq. ft.
Lot Size: 25,630 sq. ft.
Listed by: Glenn Carpenter RE/MAX Professionals
Office: 401-884-6050
Photos Handicap
$435,000 Mortgage Calculator
108 HERITAGE DR
Portsmouth, RI / 02871
MLS# 1113558
Under Contract Status: Soliciting Back-up Offers
Type: Single Family
Neighborhood: POCASSET HEIGHTS
Beds: 4 Beds
Baths: 2 Full / 1 Half
Living Area: 2,792 sq. ft.
Lot Size: 16,149 sq. ft.
Listed by: Maggie Elliott BerkshireHathaway HomeServices
Office: 401-849-1800
$895,000 Mortgage Calculator
130 GRANITE DR
East Greenwich, RI / 02818
MLS# 1083514
Type: Single Family
Neighborhood: STONE RIDGE
Beds: 4 Beds
Baths: 4 Full / 1 Half
Living Area: 3,680 sq. ft.
Lot Size: 45,237 sq. ft.
Listed by: Sophia Karvunis PHIPPS REALTY
Office: 401-884-1030
Photos 360 View
$425,000 Mortgage Calculator
0 NANAQUAKET RD
Tiverton, RI / 02878
MLS# 1039145
Type: Vacant Land
Neighborhood: WATERFRONT NANAQUAKET
Lot Frontage: 640 ft.
Lot Size: 208,827 sq. ft.
Lot Type: Residential
Listed by: Marisa Ferris RESIDENTIAL PROPERTIES LTD.
Office: 401-783-2474
Photos 360 View
$229,900 Mortgage Calculator
0 ANTHONY RD
Portsmouth, RI / 02871
MLS# 1093318
Under Contract Status: Soliciting Back-up Offers
Type: Vacant Land
Neighborhood: COMMON FENCE POINT
Lot Frontage: 1,498 ft.
Lot Size: 16,168 sq. ft.
Lot Type: Residential
Listed by: Debra Torres KELLER WILLIAMS RLTY NEWPORT
Office: 401-845-9200
Photos 360 View
$359,000 Mortgage Calculator
42 ANTHONY RD
Foster, RI / 02825
MLS# 1115960
Type: Single Family
Neighborhood: FOSTER
Beds: 5 Beds
Baths: 3 Full / 1 Half
Living Area: 5,678 sq. ft.
Lot Size: 609,840 sq. ft.
Listed by: Mary Iacono COLDWELL BANKER RESIDENTIAL BR
Office: 401-884-8050
Photos 360 View
$124,900 Mortgage Calculator
8 LANE 1 .
Warwick, RI / 02888
MLS# 1113824
Type: Single Family
Neighborhood: GASPEE/SPRING GREEN
Beds: 4 Beds
Baths: 1 Full / 0 Half
Living Area: 1,155 sq. ft.
Lot Size: 0 sq. ft.
Listed by: Anita Demers Independent Brks Realty Of RI
Office: 401-942-5600
Photos
$184,900 Mortgage Calculator
11 MATHEWSON ST
Johnston, RI / 02919
MLS# 1123855 NEW
Type: Single Family
Neighborhood: JOHNSTON
Beds: 3 Beds
Baths: 1 Full / 0 Half
Living Area: 1,008 sq. ft.
Lot Size: 8,800 sq. ft.
Listed by: Debbie Grimaldi RE/MAX 1st Choice
Office: 401-943-6111
Anchor Financial - Get Your Loan FAST with Great Rates And No Hassle
 
Stateline Insurance & Financial Services - Auto, Homeowners, Business, and Financial Services For East Providence and All of Rhode Island
Go to AAA Northeast The country's oldest bank.
Click here for C21 offices throughout Rhode Island Click here for Priority Builders Home Inspection

Understanding Capital Gains

When you sell a stock, you owe taxes on your gain — the difference between what you paid for the stock and what you sold it for. The same holds true when selling a home (or a second home), but there are some special considerations.

How to Calculate Gain

In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:

1. Purchase price: _______________________

The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.

2. Total adjustments: _______________________

To calculate this, add the following:

  • Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.
  • Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
  • Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.


3. Your home’s adjusted cost basis: _______________________

The total of your purchase price and adjustments is the adjusted cost basis of your home.

4. Your capital gain:  _______________________

Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.

A Special Real Estate Exemption for Capital Gains

Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:

  • You have lived in the home as your principal residence for two out of the last five years.
  • You have not sold or exchanged another home during the two years preceding the sale.
  • You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®.