Posted by Natalie-VA on March 20, 2007 at 16:35:43:
Dealmaker,
I don’t think the poster’s parents owned the house…I think they just lived there. So, wouldn’t she owe the tax herself based on long term cap gains treatment?
–Natalie
capital gain for first time seller :0( - Posted by Bob H
Posted by Bob H on March 20, 2007 at 06:58:26:
My friend just sold her home in Illinois and moved to Florida, Her capitl gain on the sell was 60k. She used that money for down paymnt on her new home. The fed. tax comes to approx. 6888.00 and Ill. Tax looks like 2000$. Is there any tax deduction for first time seller that could ease the pain?
Re: capital gain for first time seller :0( - Posted by dealmaker
Posted by dealmaker on March 20, 2007 at 07:58:36:
Since she is a first time seller, was the house her primary residence or a rental?
If the house was her PRIMARY RESIDENCE (she lived there 24 of the last 50 months) the gain up to $250K single, $500K married filing jointly is TAX FREE. Therefor there would be NO TAX.
Did she not live in the place for 2 years?
If it was an INVESTMENT property there is capital gains and no offset for first time seller.
Re: capital gain for first time seller :0( - Posted by Bob H
Posted by Bob H on March 20, 2007 at 08:25:15:
Unfortunatly her parents lived there for the last 11 years
Making the mortgage payments
Re: capital gain for first time seller :0( - Posted by dealmaker
Posted by dealmaker on March 20, 2007 at 11:42:29:
Then her parents owe the tax, not her! Unless she INHERITED the property, in which case she would receive a STEP UP in basis as of the time of death. If that’s the case how much gain did she have?
dealmaker