Selling a house

Forum|Forum|3 years ago
July 27, 2022
1 reply
0 views

I recently sold my house shortly after 1 year and was trying to see how to avoid the capital gains tax. Also if Im not able to avoid the capital gains tax how i can calculate it for my taxes.

conniem123

Level 7

Hi TrevorG, Here is a great resource for reduced exclusions and more,

https://turbotax.intuit.com/tax-tips/home-ownership/tax-aspects-of-home-ownership-selling-a-home/L6tbMe3Dy

The IRS has a publication just for selling your home,

https://www.irs.gov/forms-pubs/about-publication-523

This is a great resource for figuring your eligibility, your gain, how much is taxable , and reporting the sale. To calculate the capital gains tax, refer to the IRS

https://www.irs.gov/taxtopics/tc409

I hope you find this helpful!

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

TrevorGAuthor

Level 2

Thanks for the reply. I am still a little confused.

Here is some more info on it.

- Lived in the house for 1 year and 6 months

- Sold the house because of a divorce

- Made a profit on the house

Will the capital gains tax be split on the profit?

Does the $250,000 or less ($500,000 or less for married couples filing jointly) apply?

conniem123

Level 7

Refer to IRS Pub 523, page 6.

If you don't meet the Eligibility Test, you may still qualify for a partial exclusion of gain. You can meet the requirements for a partial exclusion if the main reason for your home sale was a change in workplace location, a health
issue, or an unforeseeable event.

You meet the standard requirements if any of the following
events occurred during the time you owned and lived in
the home you sold.
• Your home was destroyed or condemned.
• Your home suffered a casualty loss because of a natural or man-made disaster or an act of terrorism. (It
doesn’t matter whether the loss is deductible on your
tax return.)
• You, your spouse, a co-owner of the home, or anyone
else for whom the home was his or her residence:
1. Died;
2. Became divorced or legally separated

https://www.irs.gov/pub/irs-pdf/p523.pdf

The maximum gain exclusion of $500,000 would be split.

I hope this helps!

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"