Capital Gains Question
Hello all,
I would like to know what my options are regarding capital gains taxes on my primary residence. I bought a home in 09/2003 and sold it in 09/2004. i made a good profit from it, but i've read some articles that i can be exempt from these taxes if i meet certain requirements like your spouse loosing their job...wicth she did. Any thoughts?
Go to the IRS website and look at Pub 523 Selling your Home.
Starting on Page 14 under Reduced Maximum exclusion, it goes through and tells what qualifies. If your wife lost her job and it "resulted in your inability to pay reasonable basic living expenses" (defined in the Pub) you qualifiy for the Reduced Maximum. In that same pub there is a worksheet that you can fill out to see what your reduced number is.
If you do qualify, you should be able to exclude 125K per person.
thanks for the info, from what i read, we should be able to exclude all of our gain because it was less than $125K.
That sounds right. I didn't read the qualifications for living expenses but if you qualify, your set.