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
$210,000 Mortgage Calculator
39 WARREN AV
Warren, RI / 02885
MLS# 1072279
Type: Multi-Family
Neighborhood: DOWNTOWN
# of Units: 2
Total Beds: | Unit1(2), Unit2(2), Beds
Total Baths: 2 | Unit1(1), Unit2(1), Full
Building Area: 1,904 sq. ft.
Listed by: Jan Parrillo Parrillo Realty Group, LLC
Office: 401-228-6660
Photos
$189,900 Mortgage Calculator
29 HAYES ST
Warwick, RI / 02886
MLS# 1069957
Type: Single Family
Neighborhood: OFF BUTTONWOODS AVE
Beds: 4 Beds
Baths: 2 Full / 0 Half
Living Area: 1,800 sq. ft.
Lot Size: 4,240 sq. ft.
Listed by: Gayle Moone Real Estate Masters, Inc.
Office: 401-738-1130
Photos
$102,000 Mortgage Calculator
43 BULLOCKS POINT AV
East Providence, RI / 02915
MLS# 1063480
Type: Condo
Complex Name: STONEGATE
Beds: 2 Beds
Baths: 1 Full / 1 Half
Living Area: 942 sq. ft.
Style Type: One Level
Listed by: Joyce Motta East Bay Real Estate
Office: 401-253-2983
Photos
$229,900 Mortgage Calculator
1850 MINERAL SPRING AV
North Providence, RI / 02904
MLS# 1065948
Type: Single Family
Neighborhood: MINERAL SPRING
Beds: 3 Beds
Baths: 2 Full / 1 Half
Living Area: 4,136 sq. ft.
Lot Size: 14,187 sq. ft.
Listed by: Kathy Souza RE/MAX Preferred
Office: 401-353-2200
Photos
$149,900 Mortgage Calculator
0 JOHN MOWRY RD
Smithfield, RI / 02917
MLS# 1065007
Type: Vacant Land
Neighborhood: GEORGE WASHINGTON HWY
Lot Frontage: 200 ft.
Lot Size: 87,120 sq. ft.
Lot Type: Residential
Listed by: Bob Medeiros Watermark Realty, LLC
Office: 401-921-5300
Photos Handicap
$139,900 Mortgage Calculator
143 HOFFMAN AV
Cranston, RI / 02920
MLS# 1060682
Type: Condo
Complex Name: PARKWOOD EAST
Beds: 2 Beds
Baths: 2 Full / 0 Half
Living Area: 1,107 sq. ft.
Style Type: One Level, High Rise
Listed by: Jeanie Gorrie Residential Properties LTD.
Office: 401-885-8400
Photos 360 View
$524,500 Mortgage Calculator
18 MAPLE AV
Narragansett, RI / 02882
MLS# 1070266
Type: Single Family
Neighborhood: SAND HILL COVE
Beds: 4 Beds
Baths: 3 Full / 0 Half
Living Area: 1,793 sq. ft.
Lot Size: 5,000 sq. ft.
Listed by: Ernie ESPOSITO RE/MAX FLAGSHIP, INC.
Office: 401-789-2255
Photos 360 View
$259,000 Mortgage Calculator
1155 HOPE ST
Bristol, RI / 02809
MLS# 1053655
Type: Single Family
Neighborhood: HOPE STREET
Beds: 3 Beds
Baths: 1 Full / 1 Half
Living Area: 1,312 sq. ft.
Lot Size: 9,750 sq. ft.
Listed by: Jennifer Mello The Mello Group, Inc.
Office: 401-339-1506
Photos
$189,000 Mortgage Calculator
42 KIMBALL ST
Providence, RI / 02908
MLS# 1071595
Type: Single Family
Neighborhood: MT PLEASANT ELMHURST TRIGGS GOLF
Beds: 3 Beds
Baths: 1 Full / 1 Half
Living Area: 2,582 sq. ft.
Lot Size: 5,226 sq. ft.
Listed by: Janis CAPPELLO COLDWELL BANKER RESIDENTIAL BR
Office: 401-884-8050
Photos 360 View New Construction
$465,000 Mortgage Calculator
5 ROCKLAND ST
Narragansett, RI / 02882
MLS# 1052820
Type: Condo
Complex Name: ROCKLAND COTTAGES
Beds: 3 Beds
Baths: 2 Full / 1 Half
Living Area: 1,365 sq. ft.
Style Type: Town House
Listed by: Shawna Amitrano Fiore Realty Corp.
Office: 401-792-7107
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
TrashVeo - Curbside Service for Your Property. Take Out & Bring In Your Barrels Each Week. Centreville Bank - Depend on us
Click here for Griggs & Browne Start your new home search now. Visit a fabulous Wordens Pond Builders community in South County today.

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®.

Follow Us on Facebook Download the RILiving Mobile App View Our YouTube Channel