In other words are you allowed a one tax exeption if you are over 55?
2006-10-26 05:31:45 · 4 answers · asked by Concerned Vet Ailing 1 in Politics & Government ➔ Law & Ethics
If you are in the UK, the sale of your main residence is free of capital gains tax without limit.
If you are in the USA, sect.121 of the Internal Revenue Code allows a tax-free gain of $250,000 to each owner of the house who has lived in it for two of the past five years. A married couple filing a joint return get $500,000. A gay couple who own it jointly or as tenants in common get $250,000 tax-free each.
There are various special rules that apply if you don't meet the two-year rule for reasons beyond your control.
If the property is abroad, then you have to take into account any gain in the exchange rate. This can be very unfair: Rev. Rul. 90-79; Quijano v. United States, 93 F.3d 26 (1st Cir. 1996)
The fact that you repay a mortgage is irrelevant.
The one-time house-sale allowance for over 50s was abolished years ago. The above is the only allowance for a principal residence; there is a rollover arrangement possible under Sect. 1031 for investment and rental property.
2006-10-26 06:22:42 · answer #1 · answered by Anonymous · 3⤊ 0⤋
Do you still have last year's tax books for your state and fed? There is a phone # to call with questions. They may be in your phonebook blue pages as well or your local tax office should be able to give them to you. NOW is a good time to call to get the official answer to any question you know you will have by next tax day. Volume is low and there may be no waiting time to speak to a real person. Remember to get a record of the ID # of the person answering your Q, as well as the info he or she gives you. Ask for code reference numbers and write them down and save in a safe place. This is the best way to stay out of trouble and get the best answer. The "Horse's Mouth". Don't have too much confidence in any thing else. States differ and also new regulations come into play, fed and state.
2006-10-26 06:03:16 · answer #2 · answered by character 5 · 0⤊ 0⤋
Yep, one tax exemption over 55.
2006-10-26 05:41:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
ZERO OVER 55.
YES...
2006-10-26 05:33:16 · answer #4 · answered by cork 7 · 0⤊ 0⤋