An H&R Block agent told us we could sell our home without paying capital gains tax even though we had lived in it for less than two years because we got married in the same year. Well, he was wrong and we're getting stuck with a 25K tax bill. They won't take responsibility for this, and we're considering suing them. Does anyone have any experience with this? A website with similar information would be most appreciated.
2006-11-22 09:50:52 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
They should take responsibilty for this however I suspect that you won't be able to prove that they gave you that advice.
2006-11-22 09:57:26 · answer #1 · answered by Mn 6 · 1⤊ 0⤋
You are ultimately responsible for the taxes regardless of who prepared the return. If the return would have been prepared correctly the first time your tax bill would have been $25k higher so, assuming Block picks up the interest and penalties (which they should) you really have not sustained an economic loss. You really do not have grounds for a suit.
2006-11-24 18:25:03 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋
What bad advice they gave you. Th eonly way you can avoid paying cap gain is if you purchase another home for same (or higher) price of the house you sold. I did some research and if you can prove that they gave you that advice then you might have a chance.. I put the empasis on might.
2006-11-22 18:02:12 · answer #3 · answered by Kristin Pregnant with #4 6 · 0⤊ 1⤋