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.
I bought a house last July and planned on living there for at least 5 years, however due to a job change I need to move back across county. I'm not sure if I should try to sell the house before this July(living in it less then a year) versus sell afterwards. I know about the capital gains tax for living in the home greater than 2 years (in which I would fall under the 15-20% bracket), but i'm not sure how it works with <1 year. Is it pay an income tax rate on the profit if <1 year? Any suggestions? What will result in lowering that tax bracket IE. job change, using all the money to buy another house?
You need to talk with a CPA. There are exceptions to this rule: job relocation (more than 50 miles I think) and health reasons are two. So it is my understanding that if you had a profit on the sale of a home and had to move for a job or health reasons that you are exempt from the two year rule. Check with a CPA to make sure this is still the case and you qualify.
I could not have said it better. You have to make a profit after the costs of sales to pay taxes. If you have been in there less than a year and you have a profit that exceeds costs you are either a fantastic real estate investor or damn lucky. Pay any taxes...they are a badge to good fortune.
Most likely you will not have a gain after all the expenses of the
sale are made.
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.
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.
