do I have to report what I made on the house which I used to pay off debt - I didn't rebuy as I will be moving soon to another state where my husband to be has already bought a house.
2006-12-23 08:12:03 · 2 answers · asked by Jims Domino 1 in Business & Finance ➔ Taxes ➔ United States
I sold the house back in May 06
2006-12-23 08:12:51 · update #1
If you owned, and lived in the house as your primary residence, for at least two out the five years immediately prior to the sale, then any profit up to $250,000 ($500,000 if married filing joint) is not subject to federal tax. If you made less than that, you'll owe nothing on the profit to the feds. Check on Indiana re state tax - I don't know if they follow the same rules.
To get this exemption from tax, you don't have to put the money back into another house, and there aren't any age restrictions - those were part of the old rules for house sales, and have been obsolete for a couple years now.
Unless you have a gain you can't exclude (see above) you don't have to report it.
2006-12-23 09:39:21 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
You sold the house. You need to pay Indiana tax.
2006-12-23 10:38:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋