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 Handicap
$4,450,000 Mortgage Calculator
456 POPPASQUASH RD
Bristol, RI / 02809
MLS# 1090323
Type: Single Family
Neighborhood: POPPASQUASH
Beds: 4 Beds
Baths: 4 Full / 1 Half
Living Area: 5,580 sq. ft.
Lot Size: 268,765 sq. ft.
Listed by: Patricia Mascali Mansions & Manors
Office: 401-423-7000
Photos
$599,999 Mortgage Calculator
50 WILDWOOD CT
North Kingstown, RI / 02874
MLS# 1093608
Type: Single Family
Neighborhood: HOLLY HILLS
Beds: 4 Beds
Baths: 3 Full / 1 Half
Living Area: 4,430 sq. ft.
Lot Size: 197,762 sq. ft.
Listed by: Rhonda De La Cerda Randall Realtors Real Living
Office: 401-294-4000
Photos 360 View
$689,000 Mortgage Calculator
140 BOULDER WY
East Greenwich, RI / 02818
MLS# 1096342 NEW
Type: Single Family
Neighborhood: SIGNAL RIDGE
Beds: 4 Beds
Baths: 2 Full / 1 Half
Living Area: 4,345 sq. ft.
Lot Size: 57,499 sq. ft.
Listed by: Susan Clough COLEMAN, REALTORS
Office: 401-884-5522
Photos
$439,000 Mortgage Calculator
271 LOVE LANE
Warwick, RI / 02886
MLS# 1096167 NEW
Type: Single Family
Neighborhood: COWESETT
Beds: 5 Beds
Baths: 3 Full / 1 Half
Living Area: 2,952 sq. ft.
Lot Size: 15,172 sq. ft.
Listed by: Janis CAPPELLO COLDWELL BANKER RESIDENTIAL BR
Office: 401-884-8050
Photos Handicap
$275,000 Mortgage Calculator
221 JOHN DYER RD
Little Compton, RI / 02837
MLS# 1087427
Type: Single Family
Neighborhood: JOHN DYER/ADAMSVILLE
Beds: 2 Beds
Baths: 1 Full / 0 Half
Living Area: 835 sq. ft.
Lot Size: 170,320 sq. ft.
Listed by: Welchman Grp Real Estate Group KELLER WILLIAMS RLTY NEWPORT
Office: 401-845-9200
Photos
$245,000 Mortgage Calculator
203 LEDGE RD
Seekonk, MA / 02771
MLS# 1082098
Type: Single Family
Neighborhood: HIGH SCHOOL
Beds: 3 Beds
Baths: 1 Full / 1 Half
Living Area: 1,644 sq. ft.
Lot Size: 18,295 sq. ft.
Listed by: Joyce Motta East Bay Real Estate
Office: 401-253-2983
Photos
$225,000 Mortgage Calculator
171 CHESTNUT ST
Providence, RI / 02903
MLS# 1095820 NEW
Type: Business
Neighborhood: JEWELRY DISTRICT
Total Sq Ft: 4,620 sq. ft.
Business Type: Other
Year Est: 2001
Listed by: Gayle Moone Real Estate Masters, Inc.
Office: 401-738-1130
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
$149,000 Mortgage Calculator
227 VERMONT AV
Providence, RI / 02905
MLS# 1096037 NEW
Type: Single Family
Neighborhood: WASHINGTON PARK
Beds: 4 Beds
Baths: 1 Full / 1 Half
Living Area: 1,331 sq. ft.
Lot Size: 3,049 sq. ft.
Listed by: Kathy Souza RE/MAX Preferred
Office: 401-353-2200
Photos New Construction
$799,000 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
Lila Delman - Serving buyers and sellers of fine properties since 1964.
 
Jo-Ann Molinaro - Moving RI
Let Bonnie's experience work for you! Click here for Homefront Bldg. Inspections
Click here for Priority Builders Home Inspection Rick Moulton | RE/MAX Central | 25+ Years Experience

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