How do you figure out capital gain on sale of home?

Sale price is 150,000, purchase price was 110,000, Mortgage is 85,000

2 Answers

When did you purchase the property and what costs were associated to the sale of the property? I can provide you with an estimate with this information but you are going to be best suited by contacting a CPA, whom is familiar with real estate transactions.

Sold (not sale) price - Paid price = Capital gain

Then are things you can also subtract, like major improvements to the property, fees associated with selling the property, etc.

Here is a link for a list and more helpful information

http://www.irs.gov/pub/irs-pdf/p523.pdf