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
$679,000 Mortgage Calculator
26 DECATUR AV
Jamestown, RI / 02835
MLS# 1091482
Type: Single Family
Neighborhood: EAST SHORE
Beds: 2 Beds
Baths: 2 Full / 0 Half
Living Area: 2,142 sq. ft.
Lot Size: 41,566 sq. ft.
Listed by: Frances Bidell RE/MAX FLAGSHIP, INC.
Office: 401-789-2255
Photos 360 View
$325,000 Mortgage Calculator
217 LAFAYETTE ST
Pawtucket, RI / 02860
MLS# 1099811
Type: Single Family
Neighborhood: OAK HILL / EAST SIDE
Beds: 4 Beds
Baths: 2 Full / 0 Half
Living Area: 1,447 sq. ft.
Lot Size: 5,000 sq. ft.
Listed by: Ted Ngo William Raveis Chapman Enstone
Office: 401-751-8100
Photos 360 View Handicap
$1,425,000 Mortgage Calculator
200 EXCHANGE ST
Providence, RI / 02903
MLS# 1089781
Type: Condo
Complex Name: Waterplace
Beds: 3 Beds
Baths: 2 Full / 1 Half
Living Area: 2,250 sq. ft.
Style Type: One Level
Listed by: Benjamin Scungio Lila Delman Real Estate
Office: 401-274-1644
Photos 360 View
$399,000 Mortgage Calculator
14 ASHLAND RD
Scituate, RI / 02857
MLS# 1100113
Type: Single Family
Neighborhood: NORTH SCITUATE
Beds: 4 Beds
Baths: 2 Full / 1 Half
Living Area: 2,378 sq. ft.
Lot Size: 88,496 sq. ft.
Listed by: Rita LaDuke Hunting House Associates, Inc.
Office: 401-647-5020
Photos
$332,900 Mortgage Calculator
7 MAGNOLIA LANE
Barrington, RI / 02806
MLS# 1100731 NEW
Type: Single Family
Neighborhood: PRIMROSE HILL
Beds: 3 Beds
Baths: 2 Full / 0 Half
Living Area: 1,628 sq. ft.
Lot Size: 6,200 sq. ft.
Listed by: Anna Clancy Residential Properties, Ltd.
Office: 401-245-9600
Photos
$659,000 Mortgage Calculator
1 PRIMROSE LANE
Rehoboth, MA / 02769
MLS# 1063745
Type: Single Family
Neighborhood: THE PRESERVE
Beds: 4 Beds
Baths: 2 Full / 0 Half
Living Area: 3,020 sq. ft.
Lot Size: 60,000 sq. ft.
Listed by: Jennifer Mello The Mello Group, Inc.
Office: 508-640-0505
Photos 360 View
$159,900 Mortgage Calculator
0 SIR MICHAEL CIR
South Kingstown, RI / 02892
MLS# 955313
Type: Vacant Land
Neighborhood: WEST KINGSTON
Lot Frontage: 176 ft.
Lot Size: 40,075 sq. ft.
Lot Type: Residential
Listed by: Marc Archambault Randall Realtors Real Living
Office: 401-783-9611
Photos 360 View
$199,900 Mortgage Calculator
3753 POST RD
Warwick, RI / 02886
MLS# 1098814
Type: Single Family
Neighborhood: COWESETT
Beds: 3 Beds
Baths: 2 Full / 0 Half
Living Area: 1,632 sq. ft.
Lot Size: 10,000 sq. ft.
Listed by: Allen Gammons PRUDENTIAL GAMMONS REALTY
Office: 401-886-6100
Photos 360 View
$200,000 Mortgage Calculator
402 - 404 WASHINGTON ST
Coventry, RI / 02816
MLS# 1089736
Type: Commercial
Neighborhood:
# of Buildings: 1
Total Sq Ft: 2,475 sq. ft.
Building Type: Mixed
Listed by: Mary Iacono COLDWELL BANKER RESIDENTIAL BR
Office: 401-884-8050
Photos
$199,000 Mortgage Calculator
108 AMY HART PATH
Little Compton, RI / 02837
MLS# 1097815
Type: Vacant Land
Neighborhood: COLEBROOK ROAD
Lot Frontage: 217 ft.
Lot Size: 87,120 sq. ft.
Lot Type: Residential
Listed by: Welchman Grp Real Estate Group KELLER WILLIAMS RLTY NEWPORT
Office: 401-845-9200
Lila Delman - Serving buyers and sellers of fine properties since 1964.
 
Visit R.E. Journal of RI
Coastway has the solution and the personalized service you deserve. The country's oldest bank.
Anchor Financial - Get Your Loan FAST with Great Rates And No Hassle! 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!

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