Author Topic: Selling house-capital gains tax?  (Read 309 times)

Irishgolfer317

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Selling house-capital gains tax?
« on: July 11, 2017, 10:01:13 PM »
Selling a house we purchased 14 months ago. Expecting it to sell quickly with an expected net profit of $60,000. Will we pay capital gains tax or is there a way to avoid. Besides profit we"0're selling due to a new job in different state. Thanks!

KeithTax

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Re: Selling house-capital gains tax?
« Reply #1 on: August 01, 2017, 07:11:25 PM »
You probably will get a partial Section 121 exclusion on the sale if it is your primary residence. The $250,000 exclusion of gains from a primary residence sale if it is your primary residence for 2 of the last 5 years is usually prorated in cases like yours. The $250,000 is prorated, not the capital gain.

KMB

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Re: Selling house-capital gains tax?
« Reply #2 on: September 06, 2017, 03:11:31 PM »
Hi Keith, another question with the same topic.

I built some condominiums and have been living in one since November of 2015. I left this condo in my LLC's name until May of 2016, then switched it into my personal name (and my wife's. I was the only owner of the LLC) to avoid the non-homestead penalty. I am planning on moving in November of 2017 and taking the full capital gain exception. Is this OK? I'm looking at an enormous cap gain that I'd really, really like to avoid...

Thanks and I am LOVING your blog!

KeithTax

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Re: Selling house-capital gains tax?
« Reply #3 on: September 12, 2017, 12:38:53 PM »
KMB, The 2 out of 5 year rule to exclude $250,000 per person does not require you owned the property during the same time frame. The tax questions is: Did you LIVE there as your PRIMARY RESIDENCE 2 of the last 5 years.

KMB

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Re: Selling house-capital gains tax?
« Reply #4 on: September 29, 2017, 10:52:45 AM »
We did. Thanks Keith. You just saved us about $60k!