skydivermom 0 #1 February 17, 2006 I did a search on this topic but am not having much luck. We are in the process of selling our house and my husband mentioned paying taxes on what we get from it. I had heard (not sure where) that if you buy more real estate within the year that there are no taxes due on it. I certainly hope this is true. Can anyone elaborate or point me to a website?Mrs. WaltAppel All things work together for good to them that love God...Romans 8:28 Quote Share this post Link to post Share on other sites
gravitysucks 0 #2 February 17, 2006 I'm in the same process right now. You have to pay capital gains tax on any money you make from selling your house, unless it was your primary residence for 2 years or longer. There are some other exemptions, such as if you are forced to move greater than 50 miles for work, etc... I would check with my accountant if I was you. Good luck with the sale. X Quote Share this post Link to post Share on other sites
skydivermom 0 #3 February 17, 2006 Well, we've lived here six years and are moving about 300 miles because my husband's job offered him a transfer. Thanks for the info...and good luck with your sale as well.Mrs. WaltAppel All things work together for good to them that love God...Romans 8:28 Quote Share this post Link to post Share on other sites
tigra 0 #4 February 17, 2006 As long as you aren't selling it for more than 500K, (250K for an individual) you should be fine. Quote Share this post Link to post Share on other sites
skydivermom 0 #5 February 17, 2006 Oh goodness no....we'll be happy to get 85K for it. Thanks, Tigra, that really is a relief.Mrs. WaltAppel All things work together for good to them that love God...Romans 8:28 Quote Share this post Link to post Share on other sites
Deuce 1 #6 February 17, 2006 2 of the last five years occupied as primary residence protects from capital gains tax. If that money is rolled into the new house it should be a tax-free transaction. Check with a tqx pro in your state. Quote Share this post Link to post Share on other sites
skydivermom 0 #7 February 17, 2006 Thanks a bunch Deuce!Mrs. WaltAppel All things work together for good to them that love God...Romans 8:28 Quote Share this post Link to post Share on other sites
popsjumper 2 #8 February 17, 2006 see IRS Pub #523: http://www.irs.gov/publications/p523/index.html Look at the What's New section first. This publication explains the tax rules that apply when you sell your main home. Generally, your main home is the one in which you live most of the time. If you sold your main home in 2005, you may be able to exclude from income any gain up to a limit of $250,000 ($500,000 on a joint return in most cases). See Excluding the Gain, later. If you can exclude all of the gain, you do not need to report the sale on your tax return.... Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. This means that during the 5-year period ending on the date of the sale, you must have: *Owned the home for at least 2 years (the ownership test), and *Lived in the home as your main home for at least 2 years (the use test). My reality and yours are quite different. I think we're all Bozos on this bus. Falcon5232, SCS8170, SCSA353, POPS9398, DS239 Quote Share this post Link to post Share on other sites
