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Sell one. Move into the other. Sell the other one two years after that.
Wait until summer to sell the mountain one.
Wow licensed professionals posting in their professional capacity really should not give reckless advice like this. Shocking and very irresponsible.
If a licensed real estate agent gave irresponsible tax advice to a client, would there be any recourse? Since we have agents posting in their professional capacity on a board dedicated to real estate matters, would there be similar recourse available? Or do we all just need to silently endure endless streams of dangerous advice from people who should know better.
No Realtor should offer tax advice to anybody unless they are also a CPA. That is the only person qualified to do so. If you aren't a CPA, you aren't qualified to offer such advice.
Unfortunately, the OP posted the question here in error instead of consulting a CPA first which is the best source of advice in tax issues.
Yeah producing a 22 page document mostly filled with rules and exceptions...and exceptions to the exceptions is a great defense for answering a few sentence question with a two line conclusion about how a consumer should handle a potentially very complicated tax situation. Good one.
But nobody answered my question. Does your state oversee your behavior on the internet? I mean, you are acting in your professional capacity advising consumers. Advising on real estate matters. Is giving reckless tax advice (or any tax advice with absolutely no qualifications to do so) just business as usual for real estate agents? There are all kinds of real estate boards and committees, etc, etc. And ethics codes. And laws. Isn't there anything that can prevent this reckless behavior that could potentially harm a consumer should they listen to you? Where can we report this? Does your insurance cover claims when people sue you for following reckless advice that you give over the internet?
The OP has properties in my state. This information is clearly available online. It is written in plain English.
It is not false, misleading, misinterpreted or reckless.
One poster claims that the rule changed in 2007 without any proof. And you bought it, hook line & sinker.
If the OP contacted me personally, I would have given more information. This is a public online forum. My statements are backed by facts, not imagination.
i think you need a better education in this stuff .
'Prior to Jan. 1, 2009, you could move into your second home, make it your primary residence for two years, sell it, and take advantage of the primary-home sale exclusion. Now, as a result of new laws associated with the Housing and Economic Recovery Act of 2008, you can still make your second home a primary home before you sell it, but you'll owe taxes for the period of time that the property was a second home after Jan. 1, 2009. The IRS now uses a ratio of the years you occupied the home as a primary residence versus the years the home was used as a rental (or other than primary residence) to calculate the amount of capital gain that will be excluded from the sale.
For example, the Smiths purchased a second home in 2004. They continued to use it as a rental home during 2009 and 2010, and then used the home as a primary residence during 2011 and 2012. Only 50% of the capital gains from the sale of the home will be tax-free (up to the $500,000 exclusion) since the home was a primary residence for only 50% of the time after Jan. 1 2009."
Yeah producing a 22 page document mostly filled with rules and exceptions...and exceptions to the exceptions is a great defense for answering a few sentence question with a two line conclusion about how a consumer should handle a potentially very complicated tax situation. Good one.
But nobody answered my question. Does your state oversee your behavior on the internet? I mean, you are acting in your professional capacity advising consumers. Advising on real estate matters. Is giving reckless tax advice (or any tax advice with absolutely no qualifications to do so) just business as usual for real estate agents? There are all kinds of real estate boards and committees, etc, etc. And ethics codes. And laws. Isn't there anything that can prevent this reckless behavior that could potentially harm a consumer should they listen to you? Where can we report this? Does your insurance cover claims when people sue you for following reckless advice that you give over the internet?
ahhhh, thinks he'll give someone else a go, I see.
I haven't actually read any of them, so can't pass judgement but ... if one person links an IRS publication for your 2017 tax return, and another links media articles ranging from Feb 2017 to 2008...
I haven't actually read any of them, so can't pass judgement but ... if one person links an IRS publication for your 2017 tax return, and another links media articles ranging from Feb 2017 to 2008...
it is all in that publication from the irs that was posted as far as how it works when you convert a second home , rental or business property to a primary .
it is calculated using the worksheet on page 15 section b. this is where you calculate unqualified use for the exclusion so it gets prorated .
it is just easier to follow in the articles on line .
----------------------------------------------------------------------------------------------------------------------------------------------
Section B. Determine your non-qualified use gain.
Complete this section only if there is a period, after the year 2008, when neither you nor your spouse (or your former spouse) used the property as a main home,
and that period of non-use occurred during the 5–year period prior to the date of sale and before the time when you or your spouse (or your former spouse) used that the property as a main home.
from line 7 of Worksheet 2 .................................................
Step 2 Enter the total number of days after 2008 when neither you nor your spouse (or
former spouse) used the home as a main residence. This number is your
non-use days .................................................. ...........
Step 3 Enter the total number of days you owned your home (counting all days, not just
days after 2008). This number is your number of days owned .................
Step 4 Divide the non-use days by the days owned. This number is your non-residence
factor .................................................. ..................
Step 5 Multiply the decimal from Section B, Step 4, by the amount listed in Section B,
Step 1. This number is your non-qualified use gain. ..........................
in my opinion real estate agents should have a basic understanding of major tax law changes like this .
Last edited by mathjak107; 03-07-2018 at 03:07 AM..
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