Anonymous

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Rainmaker
4,245,512
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Reported.  Inappropriate use of an anonymously asked question.  Ask your professor.  

Sep 10, 2018 10:32 AM
Rainmaker
4,435,346
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Contact your CPA or tax attorney.

Sep 10, 2018 11:04 AM
Ambassador
5,701,526
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

A personal home or an investment?

Best to talk to a finance expert who deals in real estate.

Sep 10, 2018 10:32 AM
Rainmaker
1,759,689
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

You can go on the IRS website or call a CPA. I know you want us to answer but I would say that it is going to get taxed plain & simple. There are many exceptions that you might check out like relocation, divorce too I believe.

Sep 10, 2018 10:34 AM
Rainmaker
5,767,421
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Contact your CPA

Sep 10, 2018 02:47 PM
Ambassador
1,861,172
Alan May
Jameson Sotheby's International Realty - Evanston, IL
A moving experience!

We, as Realtors, are not qualified (nor insured) to answer tax questions.  Please consult with your tax professional.

Sep 10, 2018 02:29 PM
Ambassador
3,145,971
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

In a nutshell, you need to consult with a CPA! 

Sep 10, 2018 01:17 PM
Rainmaker
2,054,416
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

It's in the text book... try reading it.

Sep 10, 2018 12:05 PM
Rainmaker
4,303,179
Richard Weeks
Dallas, TX
REALTOR®, Broker

You should talk to a CPA or tax attorney.  Or you can do some research.  Google "capital gains" you will get 175,000,000 results.

Sep 10, 2018 10:57 AM
Rainmaker
6,968,613
Roy Kelley
Retired - Gaithersburg, MD

You will find this information on the IRS website.

Sep 10, 2018 10:32 AM
Rainmaker
5,579,354
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

that's the type of question you direct to a CPA.... it's not a question to be answered by a real estate agent....

Sep 10, 2018 10:30 AM
Rainmaker
2,066,074
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL

Wow, so many "great" answers.

Sep 10, 2018 07:35 PM
Rainmaker
1,598,130
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

I think, somebody did not open the book :)

Sep 10, 2018 06:57 PM
Rainmaker
3,672,312
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Consult with a CPA.

Sep 10, 2018 04:00 PM
Ambassador
4,513,013
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Contact your CPA.

Sep 10, 2018 03:35 PM
Rainmaker
514,474
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Yes. A CPA can tell you for their normal hourly rate and their answer would be within their licensing criteria. 

Sep 10, 2018 03:02 PM
Rainmaker
2,102,329
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

That's a question for a tax advisor or CPA. Good luck.

Sep 10, 2018 02:48 PM
Rainmaker
2,684,202
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

These rules are diverse and changing. Seek the master of this subject matter

Sep 10, 2018 01:10 PM
Rainmaker
1,179,168
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

low

Sep 10, 2018 07:01 PM
Rainmaker
1,363,039
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

Not in a nutshell. 

First, you don't state whether this is an owner occupied home or one used for investment, or a second home...   Be careful!  Always be "The source of the source, but never the source".

 

 

This is outside the scope of our license.  Beware that Sellers may tell you one thing and in reality, another thing is the reality according to their non-selective facts.  Then, trying to get out of a tax bill, they WILL point their finger at you saying you told them [whatever].  When it comes to money, or tax savings, people will lie.  Be careful.

Lots of gears turning, but generally, some exceptions apply (presenting this for your own personal knowledge):

The regulations provide a safe harbor for any of the following events occurring during the taxpayer's ownership and use of the residence as the taxpayer's principal residence:

1. Involuntary conversion of the residence;

2. Natural or man-made disasters or acts of war or terrorism resulting in a casualty to the residence;

 

3. In the case of a qualified individual:a) death; b) the cessation of employment and eligible for unemployment compensation; c) the inability to pay housing costs and basic living expenses d) court ordered divorce or legal separation e) multiple births resulting from the same pregnancy.

4. An event determined by the Commissioner to be an unforeseen circumstance to the extent provided in published guidance of general applicability or in a ruling directed to a specific taxpayer.

I highlighted 3(e) as I always thought it was the result of having more women in the legislature, which is a good thing.  My hunch is only they would think of that, most men wouldn't, but it is a fair exclusion.  Begs the question:  It is in the same household...  What if it was a live-in Nanny?  

That's why you have to be careful, and not give out tax advice.  ALWAYS HAVE THEM CONSULT THEIR TAX LAWYER, CPA , OR TAX PREPARER.  Their co-workers who they talk to over the water cooler don't count!
Answered for your own personal knowledge, Be Careful when talking taxes--you have not seen their previous returns, or their current financial situation.

Sep 10, 2018 05:03 PM
Ambassador
2,605,038
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   Do a Section 1031 tax deferred exchange.

Sep 10, 2018 05:00 PM
Rainmaker
508,854
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

Talk to your CPA.

Sep 10, 2018 03:10 PM
Rainer
353,799
J.R. Schloemer, CRS
Kentucky Select Properties - Louisville, KY

Too many missing variables, and even if they were supplied, you really need ot speak to your attorney or tax accountant. They are the only ones that can truly tell you how this will affect your personal situation.

Sep 10, 2018 07:34 PM
Rainmaker
1,708,235
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Talk to a CPA

Sep 10, 2018 07:27 PM
Rainmaker
72,949
Ricardo Mello
Manhattan Miami Real Estate - Manhattan, NY
Manhattan & Miami Real Estate Agent

We also wrote a recent article talking about CGT: "How Capital Gains Tax Can Be Reduced or Deferred When Selling Property" 

Jan 16, 2019 05:15 PM
Rainmaker
1,425,250
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

That's a question for a CPA.

Sep 14, 2018 09:08 AM
Rainmaker
5,267,179
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I always recommend my seller contact a CPA.

Sep 13, 2018 04:34 PM
Rainmaker
3,986,000
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Contact the proper professional

Sep 11, 2018 05:17 PM
Ambassador
3,071,502
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Yes.  But I'm not going to explain it to you.  Ask your CPA, don't have one?  get one.

Sep 11, 2018 02:02 PM
Rainmaker
1,549,505
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

You need to call CPA with exact numbers. 

Sep 11, 2018 11:21 AM
Rainmaker
2,051,705
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Mostly likely the gain would be treated as ordinary income ( less than 2 yrs)

Sep 11, 2018 10:40 AM
Rainmaker
577,339
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

Contact your accountant.. this is not a question for this forum..

Sep 11, 2018 06:58 AM
Rainmaker
4,799,701
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

A good question for an accountant.

Sep 11, 2018 06:32 AM
Rainmaker
4,511,808
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Your CPA can explain it in a nutshell!

Sep 11, 2018 05:54 AM
Rainmaker
4,433,809
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Talk to an accountant.

Sep 11, 2018 04:46 AM
Ambassador
4,316,065
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

What everyone said....

Sep 10, 2018 11:03 PM
Ambassador
4,722,423
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

You should be talking to a CPA

Sep 10, 2018 10:29 PM