Puma Path Sale, $ Gain?
... A nice little profit there too.... It seems awfully hard to get caught, I’m not sure he could be any more obvious.
@TKG bbm sbm Your post caught my attn, so I ballparked results of (hypo) sale at full $ 1,759,000 initial listing price. Briefly:
1. Settlement stmt calculations for SM's/BM's/Seller's side, that is, bottom line $ in Seller's hand post closing =
approx range of $ 1,605,175. to $ 1,647,163.
2. Est'ed ~ gain on sale = range of $ 30,175 to $ 74,801. Not the (larger) gain I imagined at first glance.
3. Federal income tax on gain = likely to be zero, imo.
Welcoming comment, clarification, correction from our legal and real est pro's.
jm2cts. Could be wrong.
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Not briefly, w dreary details, but no gore or trigger warnings.
1. If home sells at full asking price $ 1,759,000 (assuming not financed; no HELoC, no liens or other encumbrances on prop),
approx. $ amt due to the M's/BM at closing is sales price less various exp's listed below.
Subtract sales commission:**
if 6% ... 105,540.
if 7% .... 123,130.
if 8% ... 140,720.
........................................................................................................................... Sales commission .................................$ 105,540 to $ 140,720.
Subtract buyer's title ins premium: **
if 1/4 % ...... 4397.
if 1/2 %...... 8795.
This seems waaay high, maybe an iffy source?
............................................................................................................................Buyer's policy title ins premium..... $ 4397 to $ 8795.
Subtract misc fees (imo, ime):**
Prop Appraisal 500 - 3000, Flood cert. 100; Tax Cert. 100;
Pest Inspection 200; Recording Fees 200,
Bldg Inspxn 250; Septic Inspxn 250; HOA cert & transfer 300; etc. ** ***
...........................................................................................................................Est'ed misc fees ...................................... $ 1900 to $ 4400.
.........................................................................................................................^ SubTotals of above ^.......................$ 111,837 to $ 153,825.
From sale at $ 1,759,000, either
subtract $ 111,837
low exp. range est's, so more in seller's hand =
$ 1,647,163.
subtract $ 153,825
high exp. range est's, so less in seller's hand=
$ 1,605,175.
Or between the two ^ approx. figures.
2. If home sells at asking price $ 1,759,000;
The M's bought in 2018
................... 1,575,000
(assuming no finance, no HELoC, no capital improvements by the M's).
Difference ............................................. = 184,000, but << is not all profit to the seller, because
we must subtract
......................^ SubTotals, ranging from $ 111,837 to $ 153,825 ^, so
......................................................................................................................................$ 184,000 less 109,199 =
$ 74,801 gain; or
.....................................................................................................................................$ 184,000 less 153,825 =
$ 30,175 gain.
Or between the two ^ approx. figures.
3. Federal
income tax on gain from the (hypo) sale?
Likely to be eligible for exclusion of gain (from the sale of home up to $500,000 for a married couple filing jointly) so likely zero tax, imo, per
Publication 523 (2019), Selling Your Home | Internal Revenue Service and https://www.irs.gov/pub/irs-pdf/p523.pdf.
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* Per public record. qPublic.net - Chaffee County, CO - Report: R368531400097
** In a sales agreement for real est, buyer and seller may negotiate many ^ closing exp's or settlement charges, for either buyer or seller to pay. Also varies by state and local custom, but^ $ are typical amt or range, imo and/or ime.
*** Also ignoring some other exp. categories.
