Capital Gains Home Sale
Q: If I sold a home in Jan.'97 how long do I have to buy a new home w/o taking the capital gains in the '98 tax year(18 months?). Also, I assume I have to buy a new home equal to or greater than the sale price of my previous home.
A: -If you fail to meet the holding period requirement, the tax would be paid in *1997* and not *1998*. -You have until Jan date of sale 1999 to purchase or improve a home so that its basis will be equal to or greater than the sales price of the old home. If you do not do this, you will have to amend the 1997 return and pay tax at that rate. -To expand a bit - you must report the home sale in '97 on form 2119. If you expect to buy a home within the two year period, you can check the box that indicates this. Then when you do in fact, buy the new home you would again file the 97 form 2119 to show the rest of numbers. You have two years from the date of the sale to buy AND occupy the new home - so don't cut it too close. There are some nasty examples of people who were building the new home, experienced delays in construction, and therefore couldn't occupy the house within the two years. The IRS is VERY specific on this one. If you do not intend to buy a new home, you may as well bite the bullet and pay the tax now because the tax will be calculated from the date of sale on the home with interest and probably penalties added to it.
Discuss It!
Most Popular Articles
- Free Printable Power Of Attorney Form
- Accurate Forex Signals
- Florida Power Of Attorney Form
- Electrical Engineering Vs. Electrical Engineering Technology Salaries
- Is It Associate Or Associates Degree?
- Heartburn In Early Pregnancy
- New Immigration Law For Students
- Prozac And Alcohol
- Texas Power Of Attorney Forms
- What Is Major Medical Insurance?
- Acid Reflux
- On All Three Credit Reports.
- Free Printable Durable Power Of Attorney Forms
- Education
- Lawyers
- Accounting Degree Vs Certificate
- Celexa Side Effects
- Heartburn
- Free Printable Ged Study Guide
- Jewelry On Sale
Marketplace
Related Articles
- Cal Long Term Capital Gains Tax Rate??
- Avoid Capital Gains Tax On House Owned But Now Rented
- Vis-a-vis Capital Gains Tax?
- Long Term And Short Term Capital Gain Definition
- Capital Gains Tax 2003
- Capital Gains Tax On Florida Home Sale While California
- Without Any Liability Of Capital Gains Tax To California?
- Calculate Capital Gains Tax
- Calculating Capital Gains
- Help With Canadian Capital Gains Reporting On Quicktax
- My Question Is Can I Reduce My California Capital Gains
- Capital Gains Exemption For Business
- Capital Gains Rate On Investment Property In 2008
- How Do Taxes Work On Stocks?
- Capital Tax On
- Gift Tax, Capital Gains Tax, Or Inheritence Tax??
- Capital Gains & Tax
- Capital Gains Tax Australia
- Tax Capital Gain
- Capital Gains Shares Tax
- Capital Gains Tax On Sale
Related Categories
- Harass
- Letterhead
- Solar
- Apparel
- Wedding
- Coupons
- More
- Fashion
- Rehab
- Rental
- Travel
- Software
- Reflux
- Jewelry
- Jobs
- Course
- Back Pain
- Funeral
- Depression
- Recipes
Recently Added
- Funding Agencies For Research In India
- Open Source Project Management Tool
- Project Time Management Software
- Media Asset Management Software
- Free Forex Strategy
- Forex Rate Online
- Reserve Bank Of India Forex Rate
- Free Forex Trading Tutorial
- Auto Forex System Trading
- Forex Brokerage Firms
- Forex Trading Signals Software
- Swiss Forex Traders
- Forex Trading Mini Account
- Forex Software Trader
- Live Forex News
- Trading The Forex Market
- Best Forex Trading Signals
- Wall Street Forex India
- Forex Managed Funds
- Forex Broker Reviews Ratings