Capital gains

[WILDERTHANU]

I would like to know what kind of capital gains tax I would have to pay on my home if iI was to sell now after only owning for a year and a half. I would be putting 100% of my gain into another property.

[cdog]

I would like to know what kind of capital gains tax I would have to pay on my home if iI was to sell now after only owning for a year and a half. I would be putting 100% of my gain into another property.
About 33%. Better off waiting untill the 2 years.

[Kachina26]

PM lighting , he is the man. I think (but don't quote me) you can do a 1031 exchange to defer any taxes. Then live in the new one for 2 or 3 years (I forget which) and you're off the hook.

[ChumpChange]

You can only do a 1031 if it was investment property and not property that you were living in. Of course, then you have to purchase another investment property in order to keep the exchange.

[ChumpChange]

I would like to know what kind of capital gains tax I would have to pay on my home if iI was to sell now after only owning for a year and a half. I would be putting 100% of my gain into another property.
Are you selling your house in Upland? How much? Let me know before you get a realtor, maybe I can buy it off of you and save you the 6%. Looking to buy a house around the area.

[cdog]

PM lighting , he is the man. I think (but don't quote me) you can do a 1031 exchange to defer any taxes. Then live in the new one for 2 or 3 years (I forget which) and you're off the hook.
You can only do an exchange if you have used the property as a income property/rental. Then you have to worry about putting that kind of money into the new home and proving that you tried to rent it out before you moved into it. Not to mention the loan will be an investment property loan. You can prob. get around some of this stuff, but it's a lot of work.

[ChumpChange]

You can only do an exchange if you have used the property as a income property/rental. Then you have to worry about putting that kind of money into the new home and proving that you tried to rent it out before you moved into it. Not to mention the loan will be an investment property loan. You can prob. get around some of this stuff, but it's a lot of work.
K26 is gonna knock you out now cuz you quote him!

[cdog]

K26 is gonna knock you out now cuz you quote him!
Bring it on gramps! :D

[Kachina26]

Gramps???!!! I'm just a dumb kid, can't you tell by the lame financial advise I gave? I'm gonna be paying a buttload of CG this year if all goes the way I'm planning. But the payoff is gonna be sweet!

[Mandelon]

You get an exemption of $250,000 tax free. $500,000 if you are married and wife is on title. You will pay tax on the rest of your gain. You can deduct out improvements but have to I believe add back in depreciation taken.
If you owned it for more than a year it will be at capital gains rate, which I think is 20% fed and around 9% CA state, I think this is pretty accurate, but check with a tax preparer to be sure.

[ssmike]

You get an exemption of $250,000 tax free. $500,000 if you are married and wife is on title. You will pay tax on the rest of your gain.
This exemption only applies after 2 full years of ownership.......
Prior to the 2 year mark, you will pay capital gains tax on any gain (unless you fit one of the four IRC exceptions)
Van Wilder, how far away are you planning on moving?

[chub]

You get an exemption of $250,000 tax free. $500,000 if you are married and wife is on title. You will pay tax on the rest of your gain. You can deduct out improvements but have to I believe add back in depreciation taken.
If you owned it for more than a year it will be at capital gains rate, which I think is 20% fed and around 9% CA state, I think this is pretty accurate, but check with a tax preparer to be sure.
Is it only one year lived in?

[chub]

ssmike. Thanks.

[WILDERTHANU]

I want to stay around here, just trying to upgrade a bit.

[al cole'holic]

...are you self employed by any chance?? :idea:

[WILDERTHANU]

Yes we own our own business....

[al cole'holic]

Yes we own our own business....
This will give you the ability to get very creative if you would like to avoid some large tax consequences on selling a property prior to the 2 year mark ;)

[Mandelon]

This exemption only applies after 2 full years of ownership.......
Prior to the 2 year mark, you will pay capital gains tax on any gain (unless you fit one of the four IRC exceptions)
Van Wilder, how far away are you planning on moving?
Yep, he is right, you need to have lived in it two out of the last 5 years...I didn't notice you said you'd lived in it only a year a half... :squiggle: you should wait.

[cdog]

The problem is, you cannot buy a owner occupied property with a exchange. You would have to show it as a rental for a while. How long exactly? I'm not sure.

[Mandelon]

I think a year works alright. The law as I understand it states "intent".....so there is some leeway.
I had a friend who leased her house to her boyfriend for 6 months, exchanged for a new house, leased that to her boyfriend for 6 months too. She actually "rented" a room in each house for that time. After the 6 months she "converted" them to personal ownership.....they got married. :hammerhea
I think it will work alright.......... unless she gets audited..... :eek: :wink: :cool:

[WILDERTHANU]

This will give you the ability to get very creative if you would like to avoid some large tax consequences on selling a property prior to the 2 year mark ;)
Explain

[ShannyShan]

I would speak to a realtor. When we sold our house we waited the 2 years, but were told we could have sold early because my husband was out of work on disability. Just make sure that they know what they're talking about.

[al cole'holic]

Explain
..in a brief way, stop paying yourself a taxable salary and make other arrangements to "receive" money for this entire year. Your income will drop off and your only tax consequence is now your gain on your property.

[al cole'holic]

I would speak to a realtor. When we sold our house we waited the 2 years, but were told we could have sold early because my husband was out of work on disability. Just make sure that they know what they're talking about.
...hardships, loss of job, job transfers, etc do not fall under the 2 year requirement.

[NorCal Gameshow]

it's two years....a realtor can't give you tax advice... some realtors will just tell you what you want to hear :rolleyes: see a cpa . if there's a way they should know. renting a room doesn't make the house a rental. can you 1031 a room :confused: :D

[al cole'holic]

it's two years....a realtor can't give you tax advice... some realtors will just tell you what you want to hear :rolleyes: see a cpa . if there's a way they should know. renting a room doesn't make the house a rental. can you 1031 a room :confused: :D
..well, now that we finally know it 2 years :rolleyes:
Good thing WILDERTHANU is not a client and I hope I told him what he wanted to hear ;)

[NorCal Gameshow]

..well, now that we finally know it 2 years :rolleyes:
Good thing WILDERTHANU is not a client and I hope I told him what he wanted to hear ;)
:D :D :D
I said somerealtors :D :D