Do I get a break because I'm transferring for work? I've heard about a partial exclusion. At any rate, I don't stand to make more than $30,000...would I have to pay taxes on that??
2006-09-20 15:24:14 · 4 answers · asked by MM 1 in Business & Finance ➔ Taxes ➔ United States
I'm requesting the move, so I have to pay for my own expenses...
2006-09-20 15:34:05 · update #1
Yes, you're eligible for a reduced exclusion if you're selling because of change of employment/transfer. Look at irs.gov, download publication 523. There's a worksheet on page 14 for figuring the reduced exclusion. If you lived there even a few months, you should be OK with only $30K gain, and be able to exclude it all, and long as you haven't excluded the gain from any other house in the past 2 years.
Good luck in your new location.
2006-09-20 15:52:30 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Okay, here's the deal..in order to be exempt from capital gains taxes on the sale of your personal residence, you have to have lived in it for 2 of the last 5 years...so if you sell it, you're cooked. However, the capital gains is only on your NET profit. I bet if you look at all your costs of purchase, and all your costs of the sale....and then subtract them from your sales price....and also deduct all the capital improvements you made to the property while you were there, that you could whittle that $30k down to a MUCH lower number....and remember the maximum capital gains tax rate is only 15%, so even if you have to pay some money, it is still lots less than it used to be...
/good luck
2006-09-20 22:39:55 · answer #2 · answered by David M 2 · 0⤊ 1⤋
I don't know about the real estate end but I HIGHLY advise you to discuss this with your manager and HR, if your company is requesting you to move they should offer to help you with the costs/losses of moving. Most big companies have polices for this to fully cover the loss to you, as well as pay your relocation costs.
2006-09-20 22:27:34 · answer #3 · answered by kellyault20001 3 · 0⤊ 0⤋
Someone else posted this question today, and the best answer pointed to the IRS website at http://www.irs.gov/taxtopics/tc701.html
You may also want to look at IRS Publication 523:
http://www.irs.gov/publications/p523/index.html
2006-09-20 22:35:36 · answer #4 · answered by TaxGuru 4 · 1⤊ 0⤋