I have a home that is appraised at 715000 and owe 324000 on it. considering buying my spouse out at 50% 1. renting out house 2. selling it as is right away 3. selling after fixing it up. Improvements needed are around 150k.
I understand that there will be costs associated with selling the house and capital gains taxes, on the entire profit, which will be borne by me instead of married filing jointly exemption which is 500k.
Can someone help me work this out as to what my true cost would be ? We are both going to get 200k each of the equity on paper, but mine will be a lot lesser in real terms if I were to keep the house. He says he may want to buy it from me. Should I just do that ?
If I were to turn around and sell it how much will I need to sell it for to get the same amount 200k ?
I am a little hazy around the capital gains rules.
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