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Old 04-18-2014, 08:29 AM
 
288 posts, read 452,763 times
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Quick question on the sale of the home and re-locating while it's listed but not sold....are you sure that taxes are owed to your state if you move to FL before closing? I thought the capital gains exemption was a federal thing....so nationwide?
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Old 04-18-2014, 09:03 AM
 
2,407 posts, read 3,189,508 times
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Originally Posted by calico777 View Post
Quick question on the sale of the home and re-locating while it's listed but not sold....are you sure that taxes are owed to your state if you move to FL before closing? I thought the capital gains exemption was a federal thing....so nationwide?
The capital gains is a federal thing and it applies to your primary residence. If you change your primary residence, you will owe capital gains tax when you sell your house. For example, if you move and change your drivers license to FL, change your voter registration to FL, apply for homestead exemption, they can all be construed as having moved your primary residence.

Years ago hubby and I moved from NY to NJ. We leased a place in NJ while trying to sell the place in NY. We did not get new licenses, register the cars, or register to vote in NJ until AFTER we closed on the house in NY.

You can work in a different state than you live and you can have different domiciles, but if you register to vote, change your license (as per FL regs that you must change when you declare FL your residence), or you apply for a homestead exemption, you're announcing you've changed your primary residence.

So just don't do anything that will be construed as changing your primary residence until after the closing.

As I said before, I would consult an attorney or accountant if you have questions, as I am neither. I've only had my own experience to go by.
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Old 04-18-2014, 09:51 AM
 
288 posts, read 452,763 times
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Thank you for your help!
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Old 05-05-2014, 09:31 AM
 
Location: North Port & Maine
19 posts, read 34,097 times
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You only have to live in the house for 2 of the last 5 years to avoid capitol gains on your residence..
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Old 05-06-2014, 08:00 AM
 
16,376 posts, read 22,486,570 times
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Originally Posted by dickny1e View Post
You only have to live in the house for 2 of the last 5 years to avoid capitol gains on your residence..
This is correct. You don't lose the ability to avoid Cap Gains taxes on the day you become a FL resident.

Here is a link that explains the tax rule:
Selling Your Home - Capital Gains Tax on the Sale of a Main Home
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Old 05-06-2014, 08:51 AM
 
2,407 posts, read 3,189,508 times
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Originally Posted by dickny1e View Post
You only have to live in the house for 2 of the last 5 years to avoid capitol gains on your residence..
My bad- thanks for providing the additional info. That's why I suggested the person get advice from a professional, as I am not one, but since we too are thinking of changing residence, the capital gains thing has been on my mind.
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