2007-02-06 07:01:33 · 27 answers · asked by trixiecat 2 in Business & Finance ➔ Renting & Real Estate
You can sell your property whenever you wish. However, there will be tax issues to deal with if you make money on the sale. Basically, you have to live in a home for two years to avoid capital gains taxes.........unless you automatically re-invest that gain into another property. This is called a 1031 exchange.
Check with a CPA in your area to discuss your options.
2007-02-06 11:56:15 · answer #1 · answered by fighting118 1 · 1⤊ 1⤋
Yes but it's becoming more risky then it used to be. If you haven't lived in the house for 2 of the last 5 years you will have to pay capital gains tax on your earnings. And closing and real estate fees may eat up all your profits. There are all those TV shows on house flipping but they leave out all the financial details.
The real estate and mortgage brokers will tell you anything they want to get you to make them money so take info they give you with a grain of salt.
In general - its better not to sell your house if you have only lived in for a few months. If it is becoming too expensive for you alternatives are you can get a second job to pay your bills or rent out your house.
2007-02-06 15:09:23 · answer #2 · answered by ? 1 · 0⤊ 1⤋
Of course .... When I bought my first flat, I met my wife to be at the same time and as a result never moved in .... I simply put it back on the market the same day that I completed on the purchase. I came out with a few quid to spare but it was a great exercise in buying and selling!
But watch your costings .... will the sale price cover your agents fees, utility bills ( including council tax ), legal fees and any possible mortgage redemption penalty ( if you have one! ) ....... it would be silly to sell and lose money.
2007-02-06 15:07:21 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Yes.
The only exception to this rule would be if you are a social housing tenant exercising the 'right to buy' in the UK. If you had a discount on the market price of your home, you would have to repay that if you sell within a certain period of time. You can stlil sell the house immediately - but there's a financial penalty.
2007-02-07 02:50:09 · answer #4 · answered by Bridget F 3 · 0⤊ 1⤋
It's legal, but the taxes could be murder.
For example, You don't pay Federal taxes on the first 50k of Proffit from a house sale if it's been at least two years since you last sold a house that is your primary residence.
2007-02-06 15:07:35 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Yes and No.At times if it is a Condo, there may be a stipulation from the owner that you must hold the apartment for a certain amount of time before selling.However, if it is a free standing home ,I do not see why not.
2007-02-06 15:09:51 · answer #6 · answered by gia b 2 · 0⤊ 1⤋
Yes, but check the IRS for rules on capital gains. The amount of tax you pay depends on how long you held the house, if it was a primary residence, etc. See:
http://www.irs.gov/businesses/small/industries/article/0,,id=98921,00.html
for starters.
2007-02-06 15:07:29 · answer #7 · answered by Meg W 5 · 0⤊ 1⤋
Yes but it would be pointless as the value may not have got any higher.Wait a couple of years,my first house doubled in price by then.
2007-02-06 15:04:34 · answer #8 · answered by Anonymous · 0⤊ 1⤋
Yes. Check with your local tax advisor for the duration of ownership requirement. You must own the property for a certain amout of time to avoid capital gains tax.
2007-02-06 15:07:52 · answer #9 · answered by Kevin O 1 · 0⤊ 1⤋
yes soon as you complete you can resale. Ultimately it depends on the terms of your mortgage as well some have heavey penalties for getting out before 12 months. Hope thats helpfull.
2007-02-06 15:15:13 · answer #10 · answered by Sarah J 1 · 0⤊ 1⤋