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I read some of it what I thought answered my questions here. After going though it, my wife reminded me that this house was bought though a trust WE didn't pay for it ourselves. Might have to talk to a real estate lawyer.
Oops...
This is a perfect example of why nobody here (particularly RE professionals who should know better) should be even attempting to advise people on an internet forum. Trust ownership often involves very different tax treatment. It's simply not possible for a professional to get enough information to give responsible advice on an internet forum. That's why real professionals who take giving advice seriously do not do this.
People here (including RE professionals who should know better) have already advised you confidently and definitively on tax exclusions, etc that very well may not apply to trust owned properties (it depends on the structure and type of trust and many other things).
Yes, contact a proper advisor to discuss and read official IRS publications. Do not take tax, legal or other advice on an internet forum. IRS docs often can be complex but they are worded properly and professionally.
Tax is all about details and there are very few absolutes (every rule as a mountain of exceptions) so when you see people saying definitively how something works for taxes when they have so little info, you should immediately discredit it. Also, tax laws change all the time and RE agents are not qualified to give tax advice, nor do they have the requirement to keep up to date like tax advisors do.
Don't forget about any state taxes that might also apply to this transaction.
you're right - we should tell all posters that they must spell out all the details of their situation before addressing them. I cannot imagine how this seemingly innocuous OP wasn't divined to be not just a simple homeownership/sale question, but a much more complex "in a trust" issue.
However, it hasn't been stated but I will - I have never seen a case where, in the state of NC (where the OP is located per his user profile) that when $ changes hands at closing, the state of NC collects $2/$1000 of sale price as "revenue stamps" or "excise tax" - call it what you will. So an $80K sale price = $160 of revenue stamps
I have never seen a case where, in the state of NC (where the OP is located per his user profile) that when $ changes hands at closing, the state of NC collects $2/$1000 of sale price as "revenue stamps" or "excise tax" - call it what you will. So an $80K sale price = $160 of revenue stamps
You guys get off cheap. We are $3.70/1000 for deed stamps.
you're right - we should tell all posters that they must spell out all the details of their situation before addressing them. I cannot imagine how this seemingly innocuous OP wasn't divined to be not just a simple homeownership/sale question, but a much more complex "in a trust" issue.
However, it hasn't been stated but I will - I have never seen a case where, in the state of NC (where the OP is located per his user profile) that when $ changes hands at closing, the state of NC collects $2/$1000 of sale price as "revenue stamps" or "excise tax" - call it what you will. So an $80K sale price = $160 of revenue stamps
Sorry as I said above there is a lot going on here with us. I do know that the house is no longer in the trust it is in my name and my wife's. The trust is being dissolved here soon hopefully before the holidays hit everyone but as of now the house is in our names. Being that it was bought with money from a trust I'm not sure if that makes a difference or not will have to find out when the time comes.
Sorry as I said above there is a lot going on here with us. I do know that the house is no longer in the trust it is in my name and my wife's. The trust is being dissolved here soon hopefully before the holidays hit everyone but as of now the house is in our names. Being that it was bought with money from a trust I'm not sure if that makes a difference or not will have to find out when the time comes.
That wasn't aimed at you. It was aimed at a particular poster that likes to snipe at agents from the weeds. Good luck on your sale.
yes, good luck with the sale. and what I said holds true in NC - there's an excise tax/revenue stamps of $2/1000.
Generally, if you've owned it less than 2 years and don't have an IRS-forgiving reason to sell, you pay ordinary income on the gain, not the total. Your accountant - or the one you hire - can explain what counts towards gain beyond initial purchase and current sale price.
That wasn't aimed at you. It was aimed at a particular poster that likes to snipe at agents from the weeds. Good luck on your sale.
Let's just focus on the content of posts and avoid personal jabs like this or commenting on what you think I like to do. That will make it a nicer experience for everyone. If you disagree with my post and you think that RE professionals should, in internet forums, be advising members of the public on taxation, then do speak up and make your case for that position. Otherwise, a nice, polite "I agree" would be welcome or just remain silent.
Quote:
Originally Posted by BoBromhal
yes, good luck with the sale. and what I said holds true in NC - there's an excise tax/revenue stamps of $2/1000.
Generally, if you've owned it less than 2 years and don't have an IRS-forgiving reason to sell, you pay ordinary income on the gain, not the total. Your accountant - or the one you hire - can explain what counts towards gain beyond initial purchase and current sale price.
Don't forget about any state income taxes that may also apply. I believe some counties in NC may also have other land transfer fees. But just speak to a proper advisor to get the correct information and I suggest that you do not take tax advice or even tax information from anyone here because it's likely to be wrong or not applied correctly to your situation. No advice is better than misleading advice.
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