When you sell a property in Texas, the profits, or capital gains, on that property equal the selling price of the property minus the original price that you paid for the property. If you buy a house for $100,000, for example, and sell the house for $150,000, you must declare the $50,000 difference as a capital gain for taxation.How much is capital gains tax on real estate?
Based on your income bracket and filing status, the capital gains tax rate on real estate is either 0%, 15%, or 20%. The majority of Americans fall into the lowest couple of income brackets, which are assessed 0% in capital gains tax. However, note that these tax rates only apply if you've owned your property for more than one year.