Quote:
Originally Posted by Boomer
If a house is not the primary residence, profit is subject to capital gains tax.
Also, in general, when it comes to pricing a house to sell, some sellers recognize that time is money.
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Quote:
Originally Posted by retiredguy123
If a house is bought and sold within a year, it wouldn't qualify as a primary residence because you need to live in it for at least 2 years. Also, any profit wouldn't qualify for the capital gains tax rate. It would be taxed as ordinary income if sold in less than a year.
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That’s right, rg123, I knew it but did not think to put it in.
So whether it is a primary residence or a vacation home, cap gains could kick in — and perhaps mightily. Along with that, a big cap gain could throw a Medicare recipient over the threshold into IRMAA and increase Medicare premium costs two years down the road.
The listing price seeming low could simply mean that the potential for tax consequences is being factored in.
Whatever it is, it is certainly not my business. But I can rarely resist a conversation about taxes. (sigh)
Boring Boomer