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
$324,900 Mortgage Calculator
49 CARLTON AV
Warwick, RI / 02889
MLS# 1084990
Type: Single Family
Neighborhood: WARWICK NECK
Beds: 4 Beds
Baths: 2 Full / 2 Half
Living Area: 2,478 sq. ft.
Lot Size: 8,000 sq. ft.
Listed by: Mark McHugh Clearmark Real Estate
Office: 401-641-3842
Photos
$149,000 Mortgage Calculator
8 CORA ST
North Providence, RI / 02911
MLS# 1076142
Type: Single Family
Neighborhood: WOODHAVEN
Beds: 3 Beds
Baths: 2 Full / 0 Half
Living Area: 1,428 sq. ft.
Lot Size: 3,200 sq. ft.
Listed by: Kathy Souza RE/MAX Preferred
Office: 401-353-2200
Photos New Construction
$348,900 Mortgage Calculator
160 ALLEGRA LANE
North Kingstown, RI / 02852
MLS# 1073707
Type: Condo
Complex Name: SLOCUM HEIGHTS
Beds: 2 Beds
Baths: 2 Full / 0 Half
Living Area: 1,600 sq. ft.
Style Type: One Level
Listed by: Bob Medeiros Watermark Realty, LLC
Office: 401-921-5300
Photos 360 View
$2,695,000 Mortgage Calculator
318 RUMSTICK RD
Barrington, RI / 02806
MLS# 1060625
Type: Single Family
Neighborhood: RUMSTICK POINT
Beds: 3 Beds
Baths: 2 Full / 1 Half
Living Area: 2,740 sq. ft.
Lot Size: 309,157 sq. ft.
Listed by: Christina Ardente Residential Properties, Ltd.
Office: 401-245-9600
Photos
$169,900 Mortgage Calculator
76 SEVENTH ST
East Providence, RI / 02914
MLS# 1077231
Type: Single Family
Neighborhood: PIERCE FIELD
Beds: 3 Beds
Baths: 1 Full / 1 Half
Living Area: 1,262 sq. ft.
Lot Size: 4,009 sq. ft.
Listed by: Dan Saffer Westchester Properties
Office: 401-954-4811
Photos Handicap
$354,500 Mortgage Calculator
36 WILLIAMS CROSSING RD
Coventry, RI / 02827
MLS# 1068386
Type: Single Family
Neighborhood: GREENE
Beds: 3 Beds
Baths: 3 Full / 0 Half
Living Area: 3,218 sq. ft.
Lot Size: 146,362 sq. ft.
Listed by: Raquel Storti Keller Williams Realty
Office: 401-785-1700
Photos 360 View
$1,095,000 Mortgage Calculator
30 LENIHAN LANE
East Greenwich, RI / 02818
MLS# 1086417 NEW
Type: Single Family
Neighborhood: THE WOODS
Beds: 4 Beds
Baths: 5 Full / 1 Half
Living Area: 7,266 sq. ft.
Lot Size: 44,694 sq. ft.
Listed by: Janis CAPPELLO COLDWELL BANKER RESIDENTIAL BR
Office: 401-884-8050
Photos New Construction
$159,900 Mortgage Calculator
814 GREENVILLE AV
Johnston, RI / 02919
MLS# 1062022
Type: Single Family
Neighborhood: SMITHFIELD LINE
Beds: 3 Beds
Baths: 2 Full / 0 Half
Living Area: 1,632 sq. ft.
Lot Size: 8,800 sq. ft.
Listed by: Dan Saffer Westchester Properties
Office: 401-954-4811
Photos 360 View
$335,000 Mortgage Calculator
170 PROVIDENCE PIKE
North Smithfield, RI / 02896
MLS# 1067888
Type: Condo
Complex Name: Laurelwood
Beds: 2 Beds
Baths: 2 Full / 0 Half
Living Area: 1,682 sq. ft.
Style Type: One Level, Registered Adult Community, Green Construction
Listed by: Michelle Keach RE/MAX 1st Choice
Office: 401-943-6111
Photos
$999,900 Mortgage Calculator
135 BEECHWOOD DR
Cranston, RI / 02921
MLS# 1086989 NEW
Type: Single Family
Neighborhood: RIDGEWOOD
Beds: 6 Beds
Baths: 4 Full / 1 Half
Living Area: 9,654 sq. ft.
Lot Size: 79,866 sq. ft.
Listed by: Brian Dupont Real Estate Masters, Inc.
Office: 401-738-1130
Click here for Wells Fargo -Heath Lefort
 
Jo-Ann Molinaro - Moving RI
Lila Delman - Serving buyers and sellers of fine properties since 1964. Hallmark Homes - Homes of distinction since 1975
Thinking about home improvement? Whether you're building your dream home or updating a kitchen or replacing an old floor, do it yourself and save. The remodeling and home building bargains are here at Builders Surplus! Click here for Pilgrim Title Insurance Company

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