Sale of Home issues - Posted by Lee Tyler

Posted by Patrick in Vegas on July 11, 2002 at 19:44:32:

I believe you can. See IRS Publication 523, page 13, Reduced Maximum Exclusion. I can send you a hyperlink if you email me offlist.


Sale of Home issues - Posted by Lee Tyler

Posted by Lee Tyler on July 09, 2002 at 24:17:29:

What happens to the sale of our home if we haven’t owned it for 2 years. I was sent out of state for 6 months and 3 days for my job and rented the house during the winter to keep it occupied until I returned. It will be 2 years of ownership in October 02. Can I sell the house now and take a reduced exemption…I will only make about $60k on the sale but that’s a big chunk if I have to pay taxes on it. The IRS website was useless in helping me figure this one out.

Re: Sale of Home issues - Posted by Dave T

Posted by Dave T on July 21, 2002 at 21:49:24:

In short, NO. If you fail to meet the two years of ownership and occupancy tests, you may not exclude your profits from capital gains taxation.

Under your scenario, unless you have other mitigating information to offer, you do not qualify for a reduced exemption. If you sell now, your profit on the sale will be subject to capital gains taxes and the depreciation taken will be subject to recapture.