I sold my house last year and made a profit. The problem is that I owned the house for only 9 months. We built a new house 20 miles away because we needed more space for our baby. Is there anyway we can save taxes on the gains?
2007-01-23 02:27:25 · 3 answers · asked by aj_reel 3 in Business & Finance ➔ Taxes ➔ United States
First of all, the rolling your profits in to another home rule ended almost 10 years ago.
I don't see a way of avoiding the taxes. If you sell under two years it has to be because of an "unforseen circumstance". Having one child is not an unforseen circumstance. Per IRS rules, having "multiple births from the same pregnancy" is an unforseen circumstance but not just having a child.
Your profit may actually be lower than you think though when you add in all the closing costs.
2007-01-23 02:42:48 · answer #1 · answered by Wayne Z 7 · 1⤊ 0⤋
Because you only owned the home less than one year, you may have a problem. Consult a CPA - this is their job. Even if they can not save you money here, they may be able to save you some there.
2007-01-23 10:35:10 · answer #2 · answered by txkathidy 4 · 0⤊ 0⤋
As long as you rolled the profits into the new home I don't see what the problem is...If you did not roll the profits over I believe you can make as much at $250,000 in profits on home sales before you have to pay gains taxes.. You really should talk to your accountant about that..I probably would have done a 1031 exchange when I bought and sold...I would have talked to my accountant prior to selling...ss..
2007-01-23 10:32:55 · answer #3 · answered by Littlebit 6 · 0⤊ 3⤋