- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Will I have to pay taxes on $50,000 in gains from selling my house?
Will I have to pay taxes on $50,000 I will make from the sale of my home? I have lived in the house for 15 months and must sell in order to buy a bigger house to accommodate my my mother in law who will be coming to live with us.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
To qualify for the capital gains exclusion, you must have lived in the house as your primary residence for 2 of the 5 years leading up to the date of sale. The two years need not have been consecutive; you also qualify if you lived in the house as your primary residence for 730 days during the 5 years leading up to the date of sale.
The tax law provides an exception to the two-year rules for use, ownership and claimed exclusion when the primary reason for the sale is health, change in place of employment, or, to the extent provided in IRS regulations, “unforeseen circumstances.” The "unforeseen circumstances" accepted by the IRS are:
So it appears that your capital gain will be subject to taxation.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content