Must I report that I sold my condo when I file my income taxes? What would happen if I do not report it?
2007-01-13 16:20:41 · 5 answers · asked by missanglgrl 3 in Business & Finance ➔ Taxes ➔ United States
If you meet the short list of requirements, you do not have to report the first $250,000 in profit ($500,000 for married filing jointly).
- owned for at least 2 of the last 5 years.
- lived in as a main home for at least 2 of the last 5 years.
If your gain was less than the exclusion amounts (and you meet the test), no reporting is required. If your gain was greater than the exclusion amount (and you meet the test), only report what's left over after subtracting the exclusion amount as a capital gain.
If you do not meet these 2 tests, then all profit is treated as a capital gain and taxed accordingly.
2007-01-13 17:37:47 · answer #1 · answered by Anonymous · 1⤊ 0⤋
It is not necessarily taxable. If you owned it for the last two years, did not use it for any type of business purpose, and recognized a gain of less than $250,000, than you do not have report it on your tax return.
2007-01-13 16:25:39 · answer #2 · answered by Homeslice 4 · 1⤊ 0⤋
Listen to WiseOwl - the other answers so far are either incorrect or incomplete.
The only addition I have to his/her response is the other requirement that you can't have taken this exclusion within the 2 years prior to the sale.
If it wasn't your main home, then you can't take the exclusion.
2007-01-14 05:36:47 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Capital gain is not taxable. However property tax for 06 you might have to pay.
2007-01-13 16:26:28 · answer #4 · answered by Dang 3 · 0⤊ 4⤋
Yes you must report it. If you don't, you'll be in big doo-doo.
2007-01-13 16:25:20 · answer #5 · answered by Bill P 5 · 0⤊ 3⤋