Capital Gains Tax

[Montana_3184]

Is it a problem if I sell my primary residence and start living in my trailer? I have heard that a couple filing jointly can make up to $500,000 in profit without any capital gains taxes? I know I should check with my accountant but was just wondering if you great people had any insight.

[kdeiss]

I think it is a one time exemption.

[ronstan]

Just checked my turbo tax program and if you are married the exception is 500,000. 250,000 if single. Just send me the check

[Montana_3184]

Im just trying to figure out if we can go on the road and workamp at 46 and 43 years old. We are going to make a killing selling our So. Cal. home.

[Parrothead]

I'm pretty sure you have to be 55 to take this exemption. But I could be wrong. I'll check it out.
Happy trails..................

[ronstan]

Go to the IRS website and look for publication 523. It will tell you everything about selling your home

[Parrothead]

I just read this item in my tax book and there is nothing about age. But I'm sure at one time you had to be a certain age. Maybe some other OLD tax people will jump in here and support me. There are restrictions about how long you own the home, whether it has been your principal residence for a number of years and whether you have taken the exemption on another home. Don't rent it before you sell it or that will become income property.
Read 523 like Ron suggested.
Happy trails.....................

[ronstan]

Yes it used to be age 55 or older but they did away with that I think a couple of years ago.

[Parrothead]

Ron thank you. I'm not loosing my mind after all.
Happy trails................

[DHenry]

My take on this matter is that if a man and wife have lived in the home for two out of five years then they are eligible for non taxable profits of the first $500,000 and any profits over that would be considered capital gains. Yes, you should get the advise from your accountant. Most real estate agents will be able to tell you also.

[richfaa]

We sold our parents home in PA two years ago and the $500,000 applies..Of course that would be a fixer upper in S.calif/////

[Parrothead]

Well not all of Calif. Just certain areas. Bay Area, LA, Orange Co. We have increased but our area was low to begin with and is the reason we are experiencing tremendous growth. But then we paid $3.19 for diesel yesterday.
Happy trails...........................

[sreigle]

You can get an idea from the replies in this thread but I'd highly recommend you get professional tax advice on this question before you make a non-reversible decision. After all, if any of us are wrong, it's YOU who will pay the penalty, not us. Good luck.

[mike johnson]

hello,just did it and it works out great.you can use the exempion as many times as you want,as long as there is a 2 year wait between buying and selling your primary residence.that is the key"primary residence".no more age restictions .good luck$and happy house hunting.