Quote:
Originally Posted by ChicagoNative
The latest info is that the stimulus is based on 2018 filing. If you’ve already filed 2019, they will use those those more current figures.
Ours is a situation that I’ve not seen discussed so far: We sold our longtime northern home in 2019 and downsized to a small condo. We made a profit which artificially inflated our 2019 income and resulted in a huge tax amount due. We already filed and paid, so we will not qualify. $2400 isn’t going to make or break us, but it would’ve been nice to have, because we certainly don’t make what our 2019 return shows.
At this point, we’re thankful for our health and praying for the whole world.
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As long as you lived in your primary home for 2 of the last 5 years, the first $500,000 of PROFIT is tax-free. Unless you exceeded the cost basis (purchase price plus improvements) by $500k you should not have tax due.
If you didn't have over $500,000 profit after taking out the cost and improvements, you can file an amended return and get your money back.
If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse. Publication 523, Selling Your Home provides rules and worksheets
Selling a House? Avoid Taxes on Capital Gains on Real Estate in 2019-2020 - NerdWallet