[manaboutown]

Originally Posted by petsetc

In the OP case, there is no way to avoid a taxable gain. If you don't own the house for a year+one day, the profit is ordinary income. After that, it is taxed as a capital gain. Yo might be able to defer taxes through a 1031 exchange but if you don't already know what that is, probably you don't to get involved.

The capital gain is the sale price reduced by original cost+selling cost (commissions-renovation/stuff you had to do in the 90 days prior to the sale-etc)+capital improvements you made (swimming pool, roof,etc)+monies you paid on behalf of the buyer(title insurance,buyers assistance,etc). Google it, it is all straight forward.

Use turbo-tax to do a mock-up or seek professional advice.

My best advice is to sure your closing date is after 1 year and 1 day of purchase!

FWIW

The OP wrote he had lived in the home nine months. To qualify for a 1031 tax deferred exchange a property must be an investment property, not one's personal residence. Are you eligible for a 1031 exchange?

[Babubhat]

Please don’t use free tax advice. The irs requires code and regulations to support your conclusion,. Consult a qualified professional.

[Bridget Staunton]

Don’t forget to add the changes/updates/improvements you made to the house to the cost basis which becomes your new base

[MidWestIA]

You can ONLY avoid tax if you have not sold a house within 2 years

[kkingston57]

Your ? has created more ?s than answers. Suggest getting an opinion from a tax attorney or good tax accountant.

[La lamy]

If you were Canadian there would be no tax implications from selling your primary house. It's the best investment we have in Canada.

[Mrprez]

So much bad and outdated advice here.

[Jean G]

Are you not aware of the stipulation in your purchase contract it said if you sold your home in less than a year that all profit would go to The Villages? Don’t sell until a year and a day
This is if you bought a new home

[TommyT]

Relative bought a home in an area that turned out to be awful. After a year and a half, they decided to sell. They listed for what they paid including closing costs, but ended selling it for less. No gains so they never reported the sale, even at a loss. They just wanted out of the crime ridden slums..

What are your thoughts on that ??

[Mrprez]

Originally Posted by Jean G

Are you not aware of the stipulation in your purchase contract it said if you sold your home in less than a year that all profit would go to The Villages? Don’t sell until a year and a day
This is if you bought a new home

Less improvements.

[dyoder66@aol.com]

Get old and sell primary home

[joelfmi]

Originally Posted by crc19188

I am thinking of selling my home. Only lived in it nine months. Is there any way to get around or place profit somewhere to avoid Capital Gains Tax. Please keep politics out of your answers if you can. If you cannot make them funny. Please also need serious answers. Thanks

What is the negative reason why you are selling?

[mark100]

Suggest you use a CPA or your tax person to answer. There are to many variables to get the correct answer.

[triflex]

I just did this before moving here. Have to wait til 2 years has passed to get tax free. I listed it 2 months before that date arrived with a stipulation that it could not close sooner than the exact date I purchased 2 years prior. I had an offer 8 minutes after it went live on a no-fee FSBO listing (Zillow).

I paid the buyer broker 2% commission and could have gotten away without even doing that. But to me it was worth not having to deal directly with a buyer.

Unless one can find an investment that pays a much as the cap gain on the house (minus taxes, fees, HOA, etc), I'd wait til 2 years passed. Interest rates are going up though so there is that to worry about.

[rferg40]

Originally Posted by Rose Ann Vinci Igoe

Dear friends of mine pretty much did the same thing you are thinking of doing now. Bought and sold within 7 months (they had health issues). They sold their house very fast and it almost doubled in value. Prices are going crazy now. Also, I am positive, unless the rules have changed, that as long as you bought another house Equal or higher than the amount you sold your house for, .... You will not be charged capital gains.

That law changed during the Clinton administration, so you are a little behind in your tax law. Only way to avoid the income tax on the sale is to go through a "Starker Exchange". Realtors should know about those and those of us who do tax returns do as well. Not all that easy to do with residential property and there are fees involved. And I think the rules for Starker exchange of residential property in Florida are more complicated than other states. Sold my vacation rental/ second home in TV in June and I will be paying tax on the profit.