RubyMars
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 22 Aug 2005
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| Selling and taxes |
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I just listed my house for sale. My friends fall into two camps: Those who say that after age 55 no taxes have to be paid on the money made if it's under $250K and if it's the first home sold. The other folks argue that it's not true --that Uncle Sam gives you 2 years to either buy another property or pay up. Who's right? I'm 60 and plan to rent for about two years until I can move to Georgia where real estate is much less than Jersey where I live now in the house I'm trying to sell. I thought I had unlimited time to work things out but now I'm thinking that maybe I should buy a house or condo in Georgia, rent it for now and then move when I'm ready. SOS. This whole thing is giving me a headache.
Ruby Mars
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Mon Aug 22, 2005 4:04 am |
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efflandt
Senior Member
Cash: $ 80.45
Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
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Things change. Buying another home to avoid the tax is no longer necessary and eventual exclusion is no longer a once in a lifetime deal. You can exclude up to $250k of gain (more than once) as long as you meet the requirements.
Why not go to the source http://www.irs.gov/pub/irs-pdf/p523.pdf particularly page 9 where it starts explaining the gain exclusion?
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Mon Aug 22, 2005 11:43 pm |
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sym207
New Member
Cash: $ 0.25
Posts: 6
Joined: 22 Aug 2005
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Thanks for the website!
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Mon Aug 22, 2005 11:45 pm |
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