Will I owe Capital Gains tax on a primary residence sold fro less than 250K? Owned for 20 months?

Answer 1

What the rules are is if you have owned and lived in your primary residence for 2 out of the last 5 years you can exclude from capital gains tax gain up to $250,000 if single, and up to $500,000 if married. If you have owned it for less than 2 years (24 months), which is the case in your situation, you may be able to pro-rate the gain, if circumstances had you sell the house (another job required you to move). If you just wanted to sell the house and buy another house, then none of the gain would be excludable. But since you've owned it for more than 1 year, any gain you have on the house would be long term gain. If you are selling the house at a loss however, you do not get to deduct any of the loss on your taxes.

Answer 2

If the quick sale fee is below you paid for the abode then there is no benefit. whilst it is many times the case that is not constantly so. i've got dealt with a pair in the previous few years the place the abode were paid off and the owner took out a loan to fund different issues including holiday trips (dumb) autos (almost as dumb) or a employer initiate-up (only semi-dumb) however the quick-sell fee became extensively greater than the unique purchase fee 20 to 40 years earlier. if so, the guidelines on the sale of a private place of residing kick in and could evade capital valuable factors taxes. in between the circumstances that I dealt with, the abode became an investment components and the owner became hit with important capital valuable factors tax fairly as quickly as the depreciation recapture became taken under consideration. it is easily cut loose the cancellation of debt earnings and there is no way around it. Insolvency relating to the canceled debt is easily cut loose any capital valuable factors tax subjects. in the worst case state of affairs you will have the two a taxable capital benefit and COD earnings that may not be able to be excluded. that is a incredibly uncommon subject yet isn't impossible by potential of any potential. without understanding each and all the correct numbers and information on your case that is not available to assert if there could be any capital valuable factors tax due or not. in maximum circumstances you does not, yet that's the suitable available answer with the minimum tips available.

Answer 3

Yes, since you didn't meet the two year rule for ownership.

If you moved for health reasons or because of a job change, you can take a pro-rated exclusion for the months you did own the house - that might cover your gain and wipe out any tax.

If you just moved because you wanted to, then you'd pay long term capital gains tax on the gain.

Answer 4

First you should determine if you have gain. That is done by subtracting the purchase price, cost of improvements and the cost of sale from the sale price. If that results in a positive number you have taxable gain. There are some exceptions such as health and job change that will give you a percentage of the exclusion you would have had by waiting for the two years required.

Answer 5

If you sold the house for more than you paid for the house, plus any documented imporvements, the answer is yes you will have to pay capital gains tax on the profit.

You must own and live in the house for two of the five years prior to the sale to have profit excluded.

Answer 6

yes,,

But,, there are exceptions,, like health related reason for selling or if you changed jobs and moved 50 or more miles to a new job,,

(look under "excluding the gain" in this link)

Answer 7

ARSON FOR PROFIT AND TAX RELIEF!!!!!!