Can I avoid paying capitol gain taxes on my home if a job transfer requires me to sell my home and move?

Question

I have owned my home for 7 months. I will be moving about 450 miles away from my current location.

purchase price of house was $245,000. Easy, easy sale at $315,000

Answer 1

You make too much money to worry about capital gains taxes. Please don't rub it in our faces.

Thanks.

Answer 2

Explore the possibility of an exchange but unsure that a personal residence would qualify. However I think that if it is a job required move there may be some grace with the IRS. Consult a CPA for the best advice, and that will be the best that you can do.

Further, I doubt that you'll have a gain to worry over since it is less than 3 yrs, the real estate sale expenses likely will negate mosty or any gain, but then the gain tax is 15% over the cost basis which is the price paid plus all the cost to acquire, improve and sell. Therefore unless the gain is substantial I'd go enjoy the new job and opportunities.

Answer 3

Of course, only you would know your tax bracket, but I believe that if a job transfer takes place that requires a move of over, I think 60 miles one way, then the capital gains may be deferred or used to purchase another home, less moving expenses in a year. Further, I also believe that there is a "one time only" capital gains exemption for certain tax brackets that may just include your job transfer.
If I were you, I would call the local IRS office and ask them. You don't have to give them your SSN to get info. I also know that the information for the IRS guidelines can be found on the Internet.

Answer 4

No, you won't be able to avoid capital gains taxes. You must live in the home as your primary residence for 2 of the last 5 years to qualify for the exemption from tax on the gain.

Worse yet, since you've held it for less than one year, the gain will be taxed as short-term at your marginal tax rate instead of the long-term rate of 15%.

The old deferral rules are gone except for involuntary conversions or like-kind exchanges, neither of which appears to apply in your situation.

Given the potential tax bite involved, it might be worth taking a small efficiency apartment near the new job and leaving your family in the current home and commuting on the weekends until you've owned it for 2 years. At that point, you'll be able to sell it tax-free. With a bit of luck, the value will be even higher and you'll have more cash to do with as you please.

Answer 5

lease the homestead out and circulate decrease back for one greater 20 months sometime for the period of the subsequent 5 years. lease the homestead for a twelve months and then comprehensive a like sort replace (1031) for investment property. otherwise there could be an probability to get a proration decrease back, seek for advice from a tax attorney.

Answer 6

according to new tax laws, as long as you reinvest in another home with in a year of closing, i beleive is how it reads