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Just curious as to how many Sellers out there are currently for sale and if they have any idea how the new GOP tax bill might affect their outcome.
If you are currently listed, please let us know how long you've owned and perhaps also when do you foresee your house selling?
You might also look into the new bill, particularly sec. 1402 if you weren't already aware of the potential deadlines the GOP is planning to solidify this week.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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We have been in our home 23 years, and when we sell in 3-4 years at the current rate of equity growth, we will have to pay a capital gains tax anyway, with equity already well over $500k. Since the average homeowner moves every 7 years, this is apparently only a problem for the few that move after less than 5 years.
Not worried here, although I don't like the new provisions. I've already had my home for 15 years and plan to hopefully live here until I die or go into assisted living. In this area I don't have to worry about capital gains either, as I won't ever have equity over $250K. And if I did, I'd be thrilled!
As mentioned in another post we are currently listed, have already bought another home and mostly moved. This after the fact change will really hurt us.
My house is for sale - i plan on buying my next house with the proceeds, and only putting away about $15K. Hopefully that much! Hoping it will sell by 2/18.
My house is for sale - i plan on buying my next house with the proceeds, and only putting away about $15K. Hopefully that much! Hoping it will sell by 2/18.
Hi Jellybean50,
You may have already been aware, but If the bill passes in its current form this week, then hopefully you have owned your current home for less than 5 years or else you will be charged income tax for the sale of your home after the first of the year.
Sec. 1402. Exclusion of gain from sale of a principal residence.
Current law: Under current law, a taxpayer may exclude from gross income up to $500,000 for
joint filers ($250,000 for other filers) of gain on the sale of a principal residence. The property
generally must have been owned and used as the taxpayer’s principal residence for two out of the
previous five years. A taxpayer may use this exclusion only once every two years.
Provision: Under the provision, a taxpayer would have to own and use a home as the taxpayer’s
principal residence for five out of the previous eight years to qualify for the exclusion. In
addition, the taxpayer would be able to use the exclusion only once every five years. The
exclusion would be phased out by one dollar for every dollar by which a taxpayer’s adjusted
gross income exceeds $500,000 ($250,000 for single filers). The provision would be effective
for sales and exchanges after 2017.
You may have already been aware, but If the bill passes in its current form this week, then hopefully you have owned your current home for less than 5 years or else you will be charged income tax for the sale of your home after the first of the year.
What are you talking about? It seems like you're just making stuff up at this point. I didn't see a reference to exemptions for owning a home less that 5 years.
First of all it's not a matter of years of ownership but rather how long the home has been a primary residence. Secondly, it's a capital GAINS tax, not a tax on the sales price of your home. Therefore it will only impact people with significant gains and if a person has significant gains they need to put that money away at closing to pay the piper when the bill is due.
Just a question, what is "significant?" I do believe in all this that if there were upgrades done, and one has receipts, an allowed reason to need to sell, that there are exceptions to this also and possibly even costs incurred to purchase and sell the property are calculated in to the gain. Don't quote me, I have read quite a bit on line from various places and it is a lot if information. In the end, it will be what it will be.
Last edited by photogal9; 11-29-2017 at 12:16 PM..
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