Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#31
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A far as I know, there is no Florida tax. For complicated matters I also like the idea of an Enrolled Agent. However, we had a situation of selling our former residence-turned-rental property in 2012 and I filled out the tax return and required forms myself. Never heard a peep about it from the IRS.
Last edited by Carla B; 12-15-2023 at 09:52 AM. |
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#32
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Answers here are incomplete. A conversion from rental property to residence has multiple steps to calculate the correct taxation of the transaction. Read professional analysis previously cited or pay for professional help. Tax software is another alternative. You are responsible for your return. Code, regulations, case law is all the IRS wants to hear about support for the tax treatment on the return
Deferral of a gain is a different more complicated issue. A special rule enacted in 2008 requires the proration of gain on the sale of a personal residence that was initially used other than as a personal residence. See link below Tax Issues When Converting a Rental to Your Personal Residence | Professional Tax Services Last edited by Babubhat; 12-15-2023 at 10:10 AM. |
#33
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The federal exemption for a gain applies if you live in a primary residence in two of the past five years prior to the sale. You said you moved here in 2023 so the exemption doesn't apply yet. If you had a loss on the property in the years you rented it and could not take the loss because of passive activity rules you would be able to take the accumulated loss in the year of sale. If you were selling this as a commercial property and buying another commercial property to defer the gain you could use Section 1031. Gain on the sale is based on the cost of the property (including certain costs) less depreciation taken against the net sales price (after expenses). I'm a CPA - if you want to give me a call my number is 561-968-8571.
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Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence. John Adams |
#34
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it amazes me how much advice is given by people on this site when an request is made for legal or tax advice who are guessing and don't really know the answer. If you want legal or tax advice go to a professional in these fields. What applied in one set of circumstances may not apply to the poster's situation. This inquiry needs more info to provide a correct answer or provide alternative ideas. You're all trying to be helpful but if you don't know the answer ....
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Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence. John Adams |
#35
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Facts and circumstances are unique to each transaction.
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#36
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#37
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Thanks
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Be kind, for everyone you meet is fighting some hard battle. |
#38
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Last edited by Sully; 12-15-2023 at 08:18 PM. |
#39
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The 1031 exchange you have to identify your new property within a short time & also close within a limited time. Check the laws
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#40
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While responding posters's advice appears to be well intended a number of the posts are replete with dangerous misguidance including an ill-informed recommendation based on out of date tax law that no longer applies. I use dangerous in the sense that a return could likely be red flagged by the IRS as obviously incorrect. An audit would mean costly penalties, interest charges and possibly professional fees. I encourage the OP not to be pennywise and pound-foolish. Seek professional assistance before filing a tax return. The OP's situation requires professional guidance as several issues present themselves. It is not a simple yes or no. Although little information was provided it certainly was sufficient to indicate a tax professional should be consulted, a CPA or a registered agent. I doubt a tax attorney is needed.
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"No one is more hated than he who speaks the truth." Plato “To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine Last edited by manaboutown; 12-15-2023 at 06:52 PM. |
#41
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An Enrolled Agent is a person who has passed a comprehensive exam in tax matters and has been awarded the highest credential by the IRS. Ellen Cronin in Oxford is such a person.
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#42
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I had a friend at Block where I worked when I first retired. He was an Enrolled Agent and was the contract provider for TurboTax users when they got audited. I know many people don't like HR Block, but as a former part-time preparer for them, my experience was, in general, you got great service. |
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