i have sold my house- 2006-spend most of my time overseas do i need to claim it.?

Question

do i need to claim it with the IRS. I've lived on the house only during my summers
do i need to prove to them my residence? and how ?

Answer 1

You must be able to show the house was your main home that you lived in for 2 years within a 5 year period and if you are single the gain must be under $250,000.00(married $500,000.00). If these items are met you do not have to report it. So, from the information you have given, you have NOT lived in it so you MUST report it. It will be considered an investment rather than your main home. You should have gotten a 1099 form to report on Schedule D of your 1040 tax return. You then use the Home Sale Worksheet to figure your actual gain amount out. Good Luck!

Answer 2

To exclude the gain on this property you must have lived in it as your principal residence for 2 of the 5 years immediately prior to the date of sale. That 2 years time does not need to be all at once. If you lived in it for 4 separate 6 month periods in that 5 year window you'd be OK with the exclusion. The exclusion amount is $250,000 if you are filing as Single or $500,000 if you are filing as Married Filing Jointly.

If you do not meet the tests to exclude the gain on sale from taxes (or of you have any gain that exceeds the exclusion amount) you must pay any tax due. File Schedule D to calculate the taxable gain. If you owned the home for one year or less, the gain is treated as a short-term capital gain and it taxed at your marginal rate. If you owned it for more than one year it's treated as a long-term capital gain and is taxed at a lower rate, normally 15%.

Answer 3

The IRS will consider it your principle residence it you have been paying taxes on the property and did not claim a deduction for a residence someplace else. If there is no capital gains tax on the sale of a principle residence (Canadian wording, sorry) then you are off the hook. Check the information on sale of residence and capital gains in the tax form instructions or call the IRS.

Answer 4

You can exclude up to $250,000 of the gain on the sale of your main home if all of the following are true.

You meet the ownership test.

You meet the use test.

During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home.

If you and another person owned the home jointly but file separate returns, each of you can exclude up to $250,000 of gain from the sale of your interest in the home if each of you meets the three conditions just listed.

You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true.

You are married and file a joint return for the year.

Either you or your spouse meets the ownership test.

Both you and your spouse meet the use test.

During the 2-year period ending on the date of the sale, neither you nor your spouse excluded gain from the sale of another home.