2006-10-14 07:48:04 · 6 answers · asked by phyllupo 1 in Business & Finance ➔ Renting & Real Estate
If you purchase another, more expensive, home, you can move the cost-basis to the new property and pay no taxes. Also, f either you or your spouse is over 55, you will not be taxed on sale of a principal residence if you have lived in it for 3 of the past 5 years.
2006-10-14 08:02:43 · answer #1 · answered by Knowledge 3 · 0⤊ 0⤋
Seems like the law was changed about 10 years ago to eliminate the paying of capital gains on sale of principal residence.
2006-10-14 07:50:13 · answer #2 · answered by snvffy 7 · 0⤊ 0⤋
The law changed quite some time ago. There is no more roll over of gains for your home. Instead, if this is your home and you lived 2 of your last five years there, you are entitled to exempt $250,000 of profit from taxes, $500,000 if you and your spouse file jointly. Whoever suggest that you may roll over your gain need to read the tax laws more carefully. The new law (actually is not that new anymore) does not take into consideration of what kind of new home you buy afterword, You can repeat this process again with your new home.
2006-10-14 08:50:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Depending on the time that you lived in the principal residency. Since tax laws are so complex it wouldnt be any good to simplify them so it is best you go look at it for yourself.
IRS: Home Sale Exclusion rules, publication: http://www.irs.gov/newsroom/article/0,,id=105042,00.html
IRS: Gain and losses on real property:
http://www.irs.gov/publications/p544/ch01.html
IRS: Selling your Home Publication: http://www.irs.gov/publications/p523/index.html
Buena Suerte
2006-10-14 11:14:19 · answer #4 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
If you lived in the home 2 of the last 5 years and the profit you made off the sale was less than $250,000, then you will NOT owe taxes.
If the profit is over $250,000, then you will owe taxes.
.
2006-10-14 07:50:15 · answer #5 · answered by Zak 5 · 1⤊ 0⤋
You don't pay capital gains taxes unlesses you do not reinvest the money into another primary residence.
2006-10-14 07:50:23 · answer #6 · answered by Anonymous · 0⤊ 1⤋