and want to sell my house after lvining in it for only 22 months. Will I still have to pay Capital Gains or can I get away with a smaller percentage?
2007-03-13 07:44:41 · 3 answers · asked by Doug M 1 in Business & Finance ➔ Taxes ➔ United States
If the sale is because of a job move, then you can take a reduced exclusion of profit from tax. It would work out to 22/24 of $250K (of $500K if filing a joint return). If your profit is more than that for under two years, then you really did OK on it and will do well even after paying some tax on whatever gain is over the exclusion limit!
2007-03-13 08:18:02 · answer #1 · answered by Judy 7 · 2⤊ 0⤋
You should be OK.
There are special rules for Military persons but you may not need them. Because the sale your home is work related you get a partial exclusion. If you are married, you would receive an exclusion of $458,333 ($500,000 x 22/24) and, if you are single, you would receive an exclusion of $229,167 ($250,000 x 22/24). As long as your profit did not exceed this amount, you won't have to pay taxes on the home sale.
2007-03-13 15:10:13 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋
You should consult a tax professional about this. If you're being relocated, outside of your control, it's possible you might get some abatement. I feel like I've seen something like that somewhere, but I just don't feel like scanning the IRS website for you today. Cheers.
2007-03-13 14:49:06 · answer #3 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 3⤋