Posted by Roger Garay E.A. on June 27, 2004 at 22:09:34:
The “work related move” situation will allow you to pro-rate the 2 years.
If your “thousands of miles away” post is in a non-accompnied tour zone you could comply with your PCS orders and leave your spouse to make her move at the right time for the 2 years’ exemption.
Good luck and thank you for your service.
Internal Revenue Code 121 - Posted by John Scott
Posted by John Scott on May 17, 2004 at 09:12:45:
I live in VA and have only been in my house for less than 2 years. I know IRC 121 says that my wife and I can avoid capital gains if we live in our residence 2 out of the last 5 years. Will we still have to pay capital gains if we sell and rollover the entire net amount to a new property?
Re: Internal Revenue Code 121 - Posted by John K Haslach, CPA, MST
Posted by John K Haslach, CPA, MST on May 17, 2004 at 10:13:16:
There are instances where the capital gains can be prorated, but rolling over into a new principal residence is not one of them. It would seem wise to try to find a way to have the home be your principal residence for the two years.
Re: Internal Revenue Code 121 - Posted by Jack Roper
Posted by Jack Roper on July 24, 2004 at 22:16:44:
I bought my condo in CA one year ago for $240,000 and sold it exactly one year later for $310,000. What capital gains tax am I required to pay, assuming I am in the 28% tax bracket? If I buy another residence within 2 years for $310,000 or more, do I avoid any capital gain tax on this sale? Please advise.
Re: Internal Revenue Code 121 - Posted by Damion
Posted by Damion on June 27, 2004 at 09:40:34:
I know that there are special situations that qualify for tax expemption IR code 121 even if sold before 2 yrs. Move due to work related is one. Well, I am in the military and I am being deployed thousands of miles away. Do I qualify? What do I need when I file my taxes to be exempt?
Re: Internal Revenue Code 121 - Posted by John K Haslach, CPA, MST
Posted by John K Haslach, CPA, MST on August 01, 2004 at 07:38:54:
Did you use the condo as your personal residence the entire time? What were the exact dates of purchase and sale? It does not matter if you purchase a new residence within two years.
How about a “Thanks in advance for your help”!