Posted by Bill Jacobsen on January 08, 2007 at 21:42:58:
I am not a CPA nor do I play one on TV.
IRS publication 523 covers selling your home. You can read it online also.
You qualify for an exclusion if you meet certain criteria, not because you buy another house. To qualify for the full exclusion you must have lived in the house for at least 2 years and owned it for at least 2 years and not have sold another home within the last two years in which you claimed the exclusion.
You are not required to buy another house.
You can qualify for a reduced exclusion if you sold your house after having the twins, but not before.
If you don’t qualify for the full (up to $500,000) exclusion you were suppose to report the gain as income on your tax return for that year. At this point you would have to file an amended return.
I sold my home about 1.5 years ago and still haven’t found a new one. How long do I have before I’m taxed on the proceeds? Also, we had twins a few weeks after closing on our home (same tax year.) A nurse at the hospital told us that having multiples in the same year as selling exempted us from paying the taxes on the proceeds of our home. Any truth to this? Thanks!
Re: Help on real estate tax laws please. - Posted by Ranay Peck
Posted by Ranay Peck on January 27, 2007 at 23:44:37:
I am interested in removing a current listing agent who has not anything with our mother’s estate for the past yr. The property is no longer under the thumb of a co-executor who has not allowed this property to sell. How do we break this contract with this realtor.
Re: Help on real estate tax laws please. - Posted by David Krulac
Posted by David Krulac on January 10, 2007 at 14:58:37:
there is no time limit to buy a new personal residence and in fact you don’t have to buy a new one if you don’t want to. The nurse should stick to nursing and leave taxes to the CPAs. If single $250,000 is tax free, if married $500,000 is taxfree. No replacement property necessary as long as you lived in your former home for 2 years of the last 5 years.
- Posted by erin