Capital Gains question

Capital Gains question

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  #11  
Old Yesterday, 04:47 PM
Villageswimmer Villageswimmer is online now
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Quote:
Originally Posted by retiredguy123 View Post
The easiest way to get the correct professional answer is to buy the Turbotax software and answer all of the questions regarding the sale of your house or houses during the tax year. Turbotax will calculate any capital gains that you owe. But, the general rule is that you need to live in a house for 2 of the past 5 years as your primary residence to avoid capital gains taxes on the gain. So, if you lived in the house for less than 2 years total, you probably will owe tax on the gain. And, if you owned the house for less than one year, the gain would not be a capital gain, but it would be taxed as ordinary income. This rule is not a one time deal. It can apply to as many houses as you own throughout your life.

Good info. Nice post.
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  #12  
Old Yesterday, 04:54 PM
Boomer Boomer is online now
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Quote:
Originally Posted by Fredman View Post
I believe for federal taxes you get a one time break on the sale of your residence however once you take it you have to pay capital gains tax on the sale of any other home that you reside in. Dont know about cap gains in ohio.
That was the law before 1997 and I think it was a one time cap gains exemption of $125,000. It is not that way anymore. See my earlier post if interested.
————
And, to our original poster from Ohio, please take a look at my earlier post in this thread where I talk about what I think I know, but my main advice was to talk to a CPA, and I recommended Bob Bloom.

Also, please take some woman-to-woman advice from me. Do not make too much info public. When it comes to being a woman asking a money question, especially about profits, you could get some all too “helpful” offers behind the scenes. I hope you already know to value your privacy and find good, professional people to help you with finances when you need it.

Common thinking, over time, has always mostly been about the cliche of the woman looking for a man with a few bucks. Well, hah! There are plenty of men around looking for a woman with money, a sugar mama, or in some cases even what is known as “a nurse with a purse.”

It is ok to ask certain questions here, but in real life, up-close and personal, stay smart and stay private about money. (I bet you already know this, but I could not help saying it just in case.)

Last edited by Boomer; Yesterday at 05:23 PM. Reason: Typo
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  #13  
Old Yesterday, 05:27 PM
Villageswimmer Villageswimmer is online now
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Quote:
Originally Posted by Boomer View Post
That was the law before 1997 and I think it was a one time cap gains exemption of $125,000. It is not that way anymore. See my earlier post if interested.
————
And, to our original poster from Ohio, please take a look at my earlier post in this thread where I talk about what I think I know, but my main advice was to talk to a CPA, and I recommended Bob Bloom.

Also, please take some woman-to-woman advice from me. Do not make too much info public. When it comes to being a woman asking a money question, especially about profits, you could get some all too “helpful” offers behind the scenes. I hope you already know to value your privacy and find good, professional people to help you with finances when you need it.

Common thinking, over time, has always mostly been about the cliche of the woman looking for a man with a few bucks. Well, hah! There are plenty of men around looking for a woman with money, a sugar mama, or in some cases even what is known as “a nurse with a purse.”

It is ok to ask certain questions here, but in real life, up-close and personal, stay smart and stay private about money. (I bet you already know this, but I could not help saying it just in case.)

Good advice, Boomer.
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  #14  
Old Yesterday, 05:48 PM
maureenod maureenod is offline
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If you sold your house January 2017, you would already have taken the exemption in your 2017 tax return. Now you want to sell the home you bought in 2017. Since it is now 2 years, you are eligible for another $250 exemption for your 2019 tax return. It is unlikely that you made a profit in two years, taking into account any improvements and broker fees, closing costs.
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  #15  
Old Yesterday, 06:10 PM
retiredguy123 retiredguy123 is online now
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Quote:
Originally Posted by maureenod View Post
If you sold your house January 2017, you would already have taken the exemption in your 2017 tax return. Now you want to sell the home you bought in 2017. Since it is now 2 years, you are eligible for another $250 exemption for your 2019 tax return. It is unlikely that you made a profit in two years, taking into account any improvements and broker fees, closing costs.
The $250K exemption woild only apply if the house was her primary residence for 2 years.
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  #16  
Old Yesterday, 08:12 PM
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Nucky Nucky is offline
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Two years and one day from the time you purchased the house you intend to sell is the time I've been using for 20 years. If it closes one day before two years then Capital Gains are due.

The alternative is to strike a deal on the price and write the contract for the exact amount you purchase it for plus your expenses. Then collect the rest in a $uitcase! There is always a way. Not that I would ever do that but Dave Del Dotto and Carlton Sheets OF Real Estate Fame 10 or more years back taught this method. I think they are getting outta Coleman shortly! Good Luck.

For figuring the info here is good but check with a Lawyer or Accountant to be certain.

PM me with the details of the house. You never know. Let's save the commission.
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  #17  
Old Today, 07:32 AM
petsetc petsetc is offline
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When I first retired I did taxes for about 8 years. The Nolo reference offered by manaboutown in post #8 is quite concise in explaining the rules.
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  #18  
Old Today, 08:00 AM
justjim justjim is online now
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Quote:
Originally Posted by maureenod View Post
If you sold your house January 2017, you would already have taken the exemption in your 2017 tax return. Now you want to sell the home you bought in 2017. Since it is now 2 years, you are eligible for another $250 exemption for your 2019 tax return. It is unlikely that you made a profit in two years, taking into account any improvements and broker fees, closing costs.
Good post. I was going to post about the same. I assume the property you currently live in is your primary residence.
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  #19  
Old Today, 10:01 AM
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Mleeja Mleeja is offline
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Bob Bloom - CPA 425-941-5224. Good person to help with your question.
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