Posted by Kenny_FL on April 24, 1999 at 06:46:37:
Laugh Out Loud
ROTFLM*O = Roll On The Floor Laughing My Assets Off
BTW (By The Way) Baze, could you email me about the Jax REI club? I’m just south of you in Putman county.
Thanks, Kenny_FL ==:)
TAX question - Posted by David S
Posted by David S on April 19, 1999 at 10:49:58:
have a buyer for my personal residence.
Buyer needs 6-10 months to close as he is waiting for proceeds from the sell of his residence. He is still on the hook for 47k mortgage.
He has 10k to put down, purchase price is 125k. I owe 31k with PI pmts of 993. This was a 5 yr loan with 35 remaining pmts to satisfy the mortgage in full.
He wants me to sell/finance with a 1 yr balloon. One problem is that this would create a negative cash flow, not to mention the taxes (850) and insurance (750). He is a plant manager that relocated to our community 8 months ago. I don’t know him that well and he has a bk in his past (4 yrs ago).
My thoughts are to L/O for 12 months with the 10k being non-refundable option consideration.
If I L/O for 12 months or less, will that change the IRS tax status from residence to a rental and cause the capital gains exemption to be forfeited?
As with any deal, all input is greatly appreciated.
David S
What they said is correct…(nt) - Posted by JHyre in Ohio
Posted by JHyre in Ohio on April 20, 1999 at 06:10:36:
nt
Re: TAX question - Posted by The Baze
Posted by The Baze on April 19, 1999 at 19:37:29:
David,
As long as the house was your personal residence for 2 of the 5 years prior to the sale you are entitled to the Section 121 exclusion, which is $250,000 for single, $500,000 MFJ. Hope this helps.
Re: TAX question - Posted by Bud Branstetter
Posted by Bud Branstetter on April 19, 1999 at 17:59:46:
If you have lived in the house for the last 2 years it should not as explained starting on page 10 of pub 523.
Re: TAX question - Posted by Jeff (Dallas, TX)
Posted by Jeff (Dallas, TX) on April 19, 1999 at 16:35:52:
David,
Check out IRS publication 523 at the following address:
http://www.irs.ustreas.gov/prod/forms_pubs/pubs.html
This should answer all of your questions
John, it’s killing me . . . - Posted by The Baze
Posted by The Baze on April 21, 1999 at 19:35:53:
. . . what does (nt) mean. I’ve seen you use it a lot, and I’ve tried to find out myself, but I’m swallowing my pride & asking.
Tom Bazley
While on the subject… - Posted by JHyre in Ohio
Posted by JHyre in Ohio on April 22, 1999 at 06:53:30:
What’s LOL? Lots of Luck? Lots of Loonies?
Re: John, it’s killing me . . . - Posted by Dave T
Posted by Dave T on April 21, 1999 at 23:46:15:
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The submitter is advising you that you do not need to open the post to read the message.