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I recently sold some company stock acquired from a company I separated from some years ago. My broker told me they had reached their growth limits and advised me it was time to move on, so he sold those shares. There will be capital gains tax owed at tax time.
I am in the process of selling my home and purchasing a newer, larger home. Obviously the capital gains from my home sale profits will be negated by reinvesting the profits into the more expensive home, so no tax money owed there.
Now for the question, can I say the stocks were sold for the purpose of purchasing the new home and therefore not have to pay taxes on the stock sale.? The home sale CG's and the stock sale CG's would all essentially be reinvested in real estate.
I have ever intention of asking my tax professional when I see him, but why not see what the folks have to say about it? If I could eliminate the tax on the sale of stock, I wouldn't be nearly as grumpy...
Thanks in advance.....
The Grump...
there has not been a requirement to reinvest the proceeds from your primary residence in many years when you sell it . .
as long as it was your primary the whole time you owned it you can exclude up to 250k in profits if single and 500k if married and are required to re buy nothing .
there are different rules if it was not your primary the entire time you owned it .
so the house basically is what it is whether you buy another or not . nothing gets rolled over anymore .
you cannot combine any other assets in the exclusion , you must pay the taxes on the stock sale .
I recently sold some company stock acquired from a company I separated from some years ago. My broker told me they had reached their growth limits and advised me it was time to move on, so he sold those shares. There will be capital gains tax owed at tax time.
I am in the process of selling my home and purchasing a newer, larger home. Obviously the capital gains from my home sale profits will be negated by reinvesting the profits into the more expensive home, so no tax money owed there.
That rule changed years ago. You can no longer avoid capital gains on your primary home by rolling the proceeds into another primary home. However, you are allowed a profit of 250k (500k if married filing joint) without owing tax provided you have lived in the home at least 2 of the 5 years immediately preceding the sale.
Quote:
Originally Posted by Grumpy ol' Man
Now for the question, can I say the stocks were sold for the purpose of purchasing the new home and therefore not have to pay taxes on the stock sale.? The home sale CG's and the stock sale CG's would all essentially be reinvested in real estate.
I have ever intention of asking my tax professional when I see him, but why not see what the folks have to say about it? If I could eliminate the tax on the sale of stock, I wouldn't be nearly as grumpy...
Thanks in advance.....
The Grump...
No. If you own other stock with a long-term loss, this would be a good time to sell it.
Depending on how much you sell your current home for, if the gain is more than 250/500K (single/married) you still will pay capital gains. Unbeknownst to a lot of long time home owners, excusing the gain if you roll the profit into a more expensive house has been eliminated. And that makes ME grumpy.
--guess we all posted the same thing at the same time
You can sell stock you own that has a loss to off set the gain. Then buy similar stock to what you sold if you want too.
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