U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 11-30-2017, 08:34 PM
 
Location: San Diego / NWA
634 posts, read 312,525 times
Reputation: 850

Advertisements

Quote:
Originally Posted by Taz22 View Post
Not grandfathering in houses purchased before the law went into effect is extremely unfair. We purchased a home in a really bad area, I sent pictures of our neighborhood houses to my brother, he was shocked and asked what kind of realtor sold us this house. The houses are hidden by fir trees..

I read that you can use relocations due to jobs and are able to pro rate the time lived in the house and have it deducted from having to pay capital gains tax. We can use that for sure, because there is no way I'm living in this neighborhood for five years.
Your brother should have been shocked that you bought the house not that a Realtor sold it to you.
Reply With Quote Quick reply to this message

 
Old 11-30-2017, 09:45 PM
 
7,485 posts, read 6,358,600 times
Reputation: 15702
Quote:
Originally Posted by Taz22 View Post
Good information, thanks. We purchased and finalized a house in 2/17 and plan to sell fairly soon. Please tell me that we can still use the two year capital gains tax exemptions. Won't the five year rule apply only to properties purchased after 2017? This is something I'm not clear on.
Apparently not. By the time you can get your home sold and closed, you will be past the present window.
Reply With Quote Quick reply to this message
 
Old 11-30-2017, 10:12 PM
 
Location: Olympia area
314 posts, read 96,116 times
Reputation: 631
Quote:
Originally Posted by Slytrix View Post
Your brother should have been shocked that you bought the house not that a Realtor sold it to you.
If I'd been able to check out houses in this neighborhood I'd have run like hell in the opposite direction. The really bad houses are hidden by huge firs. She hustled us through quickly. The parts you can see look fine.

Last edited by Taz22; 11-30-2017 at 10:37 PM..
Reply With Quote Quick reply to this message
 
Old 11-30-2017, 10:31 PM
 
Location: Olympia area
314 posts, read 96,116 times
Reputation: 631
Quote:
Originally Posted by oldtrader View Post
Apparently not. By the time you can get your home sold and closed, you will be past the present window.
True, but I'm already resigned to a big tax bill for this next move. Anyway, there is a rule now, if you move before the two years and the move is 50 miles further for work, you can prorate the time you lived in the house for part of the capital gains deduction. Who knows, this rule may carry over and we may be able to use some of it. We live close to Olympia now, spouse's company has their home office in Portland. We could always move closer to his job.
Reply With Quote Quick reply to this message
 
Old 12-01-2017, 02:38 AM
 
Location: East Coast Native in So Calif.
248 posts, read 71,497 times
Reputation: 213
Quote:
Originally Posted by dothetwist View Post
As far as flippers, IMO flippers don't hold houses for over 2 years...they get in and they get out. I'd be OK if this law went to 3 out of 5 years, but 5 out of 8 years is too long in this day and age.
Agreed. If the new law will revise to 3 of 4 years or 3 of 5 years like you stated I could be more in favor of the bill that is very horrendous and bad for most middle income people. This is to hurt people living on the coasts (both east and west) as people tend to move more frequently than those in the middle of country. So to have the "coastal elites" pay for the corporate tax cuts is the republican way of punishment for 2016.
Reply With Quote Quick reply to this message
 
Old 12-01-2017, 10:33 AM
 
Location: Raleigh
5,404 posts, read 3,958,359 times
Reputation: 6935
Quote:
Originally Posted by Taz22 View Post
True, but I'm already resigned to a big tax bill for this next move. Anyway, there is a rule now, if you move before the two years and the move is 50 miles further for work, you can prorate the time you lived in the house for part of the capital gains deduction. Who knows, this rule may carry over and we may be able to use some of it. We live close to Olympia now, spouse's company has their home office in Portland. We could always move closer to his job.
Quote:
Originally Posted by Taz22 View Post
Good points, thanks. The government will find ways to gouge people regardless.
Those aren't taxes...They are things you pay for, services and whatnot, involved in selling the house.

I think you're confusing equity with gain.

If you pay $350,000 for a house, and sell it a year later for $400,000, and don't spend a penny in improvements in the time you owned it, and pay the Realtors $24K or thereabouts, and a figure $2K in other seller closing costs, your looking at a $24K Gain. Its another $3,600 and it stinks, but I think that there are very few people that are going to be in that boat. Especially since even a handful of improvements will eat into that gain in a hurry. A $5,000 roof or HVAC replacement or new window project will eat into your taxable gain even further.
Reply With Quote Quick reply to this message
 
Old 12-01-2017, 12:27 PM
 
Location: Olympia area
314 posts, read 96,116 times
Reputation: 631
Quote:
Originally Posted by JONOV View Post
Those aren't taxes...They are things you pay for, services and whatnot, involved in selling the house.

I think you're confusing equity with gain.

If you pay $350,000 for a house, and sell it a year later for $400,000, and don't spend a penny in improvements in the time you owned it, and pay the Realtors $24K or thereabouts, and a figure $2K in other seller closing costs, your looking at a $24K Gain. Its another $3,600 and it stinks, but I think that there are very few people that are going to be in that boat. Especially since even a handful of improvements will eat into that gain in a hurry. A $5,000 roof or HVAC replacement or new window project will eat into your taxable gain even further.
We've had the house since February, paid 500k and spent around 50k to update. Most of the work we did ourselves. I'm hoping to get back what we put into it. We can't use the capital gains deduction when selling this house, thanks to the new tax law, but it's either sell or wait four more years.
Reply With Quote Quick reply to this message
 
Old 12-01-2017, 01:51 PM
 
Location: Columbia, SC
8,377 posts, read 16,446,547 times
Reputation: 5555
Quote:
Originally Posted by Taz22 View Post
We've had the house since February, paid 500k and spent around 50k to update. Most of the work we did ourselves. I'm hoping to get back what we put into it. We can't use the capital gains deduction when selling this house, thanks to the new tax law, but it's either sell or wait four more years.
If you have 550k in it and you're just hoping to get that back you no GAINS there you won't be paying taxes since you are taxed on GAINS, especially when factoring in the cost to sell.
Reply With Quote Quick reply to this message
 
Old 12-01-2017, 02:06 PM
 
Location: Olympia area
314 posts, read 96,116 times
Reputation: 631
Quote:
Originally Posted by Brandon Hoffman View Post
If you have 550k in it and you're just hoping to get that back you no GAINS there you won't be paying taxes since you are taxed on GAINS, especially when factoring in the cost to sell.
Hey, that's good news! Thanks, much appreciated. The house should be on the market by June, looks like the damage won't be as bad as I feared.
Reply With Quote Quick reply to this message
 
Old 12-01-2017, 02:42 PM
 
1,729 posts, read 809,237 times
Reputation: 3265
I believe you only have to be under contract prior to the new year, not sold, to still qualify for the old tax treatment.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate

All times are GMT -6.

2005-2017, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32 - Top