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Rainmaker
3,246,820
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
2,981,561
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Contact your CPA or tax attorney.

Sep 10, 2018 11:04 AM
Ambassador
4,064,616
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - 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
1,507,776
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

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
4,321,251
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Contact your CPA

Sep 10, 2018 02:47 PM
Ambassador
1,621,640
Alan May
Coldwell Banker Residential - Evanston, IL
Helping you find your way home.

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

Sep 10, 2018 02:29 PM
Rainmaker
2,765,619
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

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

Sep 10, 2018 01:17 PM
Rainmaker
1,566,765
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

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

Sep 10, 2018 12:05 PM
Rainmaker
2,903,552
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
5,270,325
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

You will find this information on the IRS website.

Sep 10, 2018 10:32 AM
Rainmaker
4,876,134
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for 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
1,458,252
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

Wow, so many "great" answers.

Sep 10, 2018 07:35 PM
Rainmaker
1,036,872
Valeria Mola
SIB REALTY - Sunny Isles Beach, FL
305-607-0709 SIB Realty

I think, somebody did not open the book :)

Sep 10, 2018 06:57 PM
Rainmaker
2,708,736
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
3,192,763
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Contact your CPA.

Sep 10, 2018 03:35 PM
Rainmaker
506,933
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
1,026,482
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
2,426,359
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
985,479
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

low

Sep 10, 2018 07:01 PM
Rainmaker
1,070,064
Gary Frimann, CRS, GRI
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
2,345,039
Fred Griffin presently on Leave of Absence
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
351,797
Susie Kay
Ultima Real Estate - Plano, TX
North Dallas Specialist

Talk to your CPA.

Sep 10, 2018 03:10 PM
Rainer
223,387
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
Ambassador
1,614,444
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
61,135
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
1,212,784
Ryan Huggins - Thousand Oaks, CA
www.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
4,024,418
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
3,977,717
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
2,850,927
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
1,478,411
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

You need to call CPA with exact numbers. 

Sep 11, 2018 11:21 AM
Rainmaker
1,818,056
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
576,873
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
4,796,551
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
3,173,491
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
4,432,083
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
4,298,296
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

What everyone said....

Sep 10, 2018 11:03 PM
Ambassador
3,918,095
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

You should be talking to a CPA

Sep 10, 2018 10:29 PM