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Old 11-28-2017, 01:53 AM
 
349 posts, read 79,943 times
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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.

https://waysandmeansforms.house.gov/...ection_hr1.pdf

GL all, and if you have any questions, just fire away.
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Old 11-28-2017, 09:12 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
26,078 posts, read 45,168,905 times
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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.
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Old 11-28-2017, 09:18 AM
 
Location: Virginia
2,702 posts, read 1,101,127 times
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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!
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Old 11-28-2017, 04:30 PM
 
202 posts, read 84,964 times
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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.
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Old 11-28-2017, 08:05 PM
Status: "Peace hath higher tests of manhood than battle ever knew" (set 4 days ago)
 
Location: Salem County, NJ
1,393 posts, read 1,964,019 times
Reputation: 1639
I can't get to the link.

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.
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Old 11-29-2017, 06:37 AM
 
349 posts, read 79,943 times
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Quote:
Originally Posted by Jellybean50 View Post
I can't get to the link.

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.
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Old 11-29-2017, 10:06 AM
 
7,327 posts, read 10,284,899 times
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So....its best to own a house for less than 5 years?
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Old 11-29-2017, 12:22 PM
 
324 posts, read 262,466 times
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Here is the link:

https://waysandmeansforms.house.gov/...ection_hr1.pdf


Copy and pasted post #90 by dothetwist

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.

From this post, link attached. (Yes, I am confused as this would more than likely effect me)
GOP Tax Plan Change to Rules for Sale Principal Residence
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Old 11-29-2017, 12:46 PM
 
Location: Columbia, SC
8,377 posts, read 16,446,547 times
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Quote:
Originally Posted by riggy_house View Post
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.
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.
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Old 11-29-2017, 12:54 PM
 
324 posts, read 262,466 times
Reputation: 675
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 01:16 PM..
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