The previous responses are accurate (125K if you're single, the 250 is joint). You still must claim it on Schedule D. You write "Sale, Prim Res" on the line, the sale price, adjusted cost basis, etc to get your "gain". The very next line, write "Sect 128 Deduction" and write in the exact opposite of your gain. Hence, you still report it, but it zeros out.
2007-02-02 12:46:23
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answer #1
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answered by capeal 2
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No, it's not taxable. You may exclude up to $250,000 ($500,000 if married filing jointly) in gain on sale of a personal residence if:
1. It's your principal residence. Good to to there.
2. You lived in it for 2 of the 5 years immediately prior to the sale. Good to go there too.
3. You have not claimed the exclusion in the past 2 years. Check!
4. If married, you file a joint return. Doesn't apply to you!
So, your gain is TAX FREE. Enjoy your windfall!
2007-02-02 20:37:21
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answer #2
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answered by Bostonian In MO 7
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Internal Revenue Code 121 says each principal-residence seller who has owned and occupied a home at least 24 of the 60 months before its sale can claim up to $250,000 tax-free capital gains upon sale.
2007-02-02 20:33:59
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answer #3
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answered by Justsyd 7
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You do not have to pay capital gains taxes on the sale of your home if it was your residence. You have to have lived in it for 2 out of the last five years.
2007-02-02 20:37:52
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answer #4
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answered by pixilatedpi 2
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The rule is "you had to live in the house for two out of the last five years". So, there is no tax if you lived in the house, as your principal residence, for at least two of the three years you owned it. If you meet this rule you do not need to declare this on your tax return.
2007-02-02 20:47:24
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answer #5
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answered by John 1
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No, it is not taxable.
You had to have your home as your primary residence for two or more years. You can make up to $250,000 profit from the sale without reporting it as income for taxation purposes. And, you do not have to purchase another home to avoid the taxes, either.
2007-02-02 20:35:50
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answer #6
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answered by M H 3
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It is not taxable. Whether you need to put it on your tax return or not depends. If the title company got things right and coded it as a homestead, you will not receive a 1099 and you do not need to include it on your tax return. If they messed it up and sent a 1099, which happens way too often, you show the sale on Schedule D of your tax return, but do not recognize a gain.
2007-02-02 20:43:13
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answer #7
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answered by Lee 5
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I know that you do not have to pay capitol gains tax on the sale of your home if you owned it for over 2 years, but you might have to still file it somehow so that the IRA doesnt red flag you for the large deposit into your bank acct
2007-02-02 20:34:28
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answer #8
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answered by jgrantspecial 2
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Yes, as a capital gain, unless you have bought another, more expensive property.
2007-02-02 20:34:06
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answer #9
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answered by Anonymous
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