If one sells a primary residence, at what age is he exempt from paying income tax on the proceeds.  If he buys another house, does he or she have to invest all of the proceedsof the first house in the new house. Is this a one time thing \nthe exemption from income tax on the sale of the home and at what age does this exemption take place.
125243
Yes and no.\n\nGenerally speaking, for individuals there is a $250,000 tax exclusion and for married couples, there is a $500,000 tax exclusion.  If your gain from the sale of your house is less than these limits, you may not have to report the sale on your taxes.  If the gain from the sale of your house is more than these respective limits, then you will have a taxable gain.\n\nHowever, there are minimum requirements for living in the home to qualify for these exclusions.  For instance, within the 5 years prior to the sale of the home, you must have lived in the home as your primary residence for at least two years and you must have owned the home for a minimum of two years.\n\nI don't think there are any age restrictions or limitations or exemptions.\n\nAnd this is currently not a one time event.  As long as you meet the minimum ownership and residency requirements, you can qualify for the exemption.  This may mean that you could buy and sell a house every two years (full calendar years) and qualify for the exemption.\n\nBut tax laws are always changing. For more accurate and up to date information about your particular tax situation, consult the IRS documents and/or a professional tax consultant.  I am not a professional tax consultant so my advice should not be considered a trusted source.\n\nhttp://www.irs.gov/individuals/article/0,,id=132621,00.html\nhttp://www.irs.gov/businesses/small/industries/article/0,,id=98921,00.html
48085
You will pay capital gains tax on the gain.\n\nYou first calculate how much you will sell it for minus your tax basis. The tax basis is what you bought it for minus how much you have depriciated it over the years. So if you bought it for $100k and depretiated $15000 over some number of years, then your basis is $85k. If you sell it for $150k then you pay capital gains on the difference of $65k.\n\nYou tax braket determines how much you will ultimately pay. You will have to ask a CPA for how to minimize them. You might be able to do an installment sale to save a little money. That way you only pay what you get each year, you can split it into 2 years if you sell some in december and the rest in jan, or do it over several years. This will possibly keep you in a lower bracket each year.
502930
Since your father lived in his home 2 years, he will be allowed an exclusion of $250,000 of capital gain from the sale of his house.  He also qualifies for an exclusion because the sale is due to health reasons (you say he needs to move to assisted living facility). \n\n"A sale will be considered because of health if the primary reason is related to a disease, illness, or injury of a qualified person. If a physician recommends a change in residence for health reasons..."\n\nhttp://www.irs.gov/newsroom/article/0,,id=105042,00.html\n\nSince he qualifies due to medical reasons, if he had lived in the home for less than two years, the exclusion amount could be pro-rated.  The example given in the article:  If he had lived in the home only one year instead of two, his exclusion would be 50% of $250,000 or $125,000 of gain.\n\nHe only has to report gain on his tax return in excess of $250,000.  If he itemizes, he should still include real estate taxes, mortgage interest, and other allowable deductions on his Schedule A.  If he realized a capital loss due to the sale of his home, unfortunately, the loss is not an allowed deduction.
43881
You need to talk to your realestate agent and your accountant. There is a program that protects you from this tax. If you buy the new property within  2 years of the sale of the old property, you pay Capitol Gains Tax. It's called Property Exchange and you only pay 25% capitol gains on the balance from one property to the other. Example: you sell for 50,000 and buy for 40,000, you pay capitol gains tax on 10,000.\n\nGood Luck!
558739
Yes, unless the litigants can prove that,that is why they did it. Their new house will also have to be in your name for at least two years. Also, you will have to pay capital gain taxes on the money you receive from the original sale of their "old" home.
117447
If you make a profit on a house that you own over such a short period of time, then that profit is income and it must be reported as such.  If you hold the property over a longer period of time, the profit becomes "capital gaines" and is taxed differently.\n\nThere are a number of ways, however, to "shelter" your income from tax liability.  If this is something you plan to do on a regular basis, then I would suggest that you consult with an accountant about handling your house purchases and sales as a business venture.
665009
in some cases you may be committing fraud if you claim a house is a primary residence and then immediately rent it out. Laws very by state but you will usually have to occupy the home for between 6months-2 years for it to be considered a primary residence.
117685
If you are definately going to be selling off the house in two years, then just paying the interest is a smart thing to do.  What will happen is that when the house sells, both mortgages will be paid off and you will have the balance to invest in a new home.  The only way you could get in trouble is if your plans change for whatever reason or you are unable to sell your home for it's full value.  Just make sure you are not just spending away what you would have been using to pay down the mortgage and it is being saved or invested.  A number of people get caught in that "spend everything" trap.
159013
If you sell it now, you will pay capital gains.  If you wait until it's in his estate and the estate sells it, you may not pay any estate tax at all, depending on the value of the estate as a whole -- currently, an estate tax exemption applies to estates with a value of up to $2 million; and in 2009 this increases to $3.5 million; and then in 2010 the estate tax is "repealed" altogether.  (See Smart Money link below.)  I say "repealed" in quotes because in 2011, the law sunsets and estate tax rates go back to what they were when the law changed (I believe that was 2001).  So if the estate is opened between now and 2010, you may not pay estate tax at all.  And of course, Congress could extend the law between now and 2011.  So, there is some uncertainty involved.\n\nThe above addresses federal taxes.  You'd also have to check to see if your state levies an estate tax, some states do.\n\nBut one thought -- with the uncertainty above, you might consider having your dad put the land in a trust.  This could be used to avoid estate taxes AND avoid the probate process.  The trust beneficiaries would receive the property at his death with a "step up in basis" -- meaning if they turned around and sold it after he died, their gain would be based on the land's value at the time of his death and NOT its value in 1920.  (See paytaxeslater.com link below.)  In fact, if your dad hasn't already done so, he might consider this approach for all or most of his assets.\n\nYou should run this by an experienced estate and trust atty where you live, with some planning now you might save some taxes.
428990
If your father died in 2005 the estate will be exempt for the first 2 million dollars.  You will need to file an estate return which normally requires an attorney and a CPA because they are rather complicated.  Not filing the return will surely complicate things.  If there are taxes due and not liquid assets to make those payment from the estate the estate will need to liquidate some of the assets.  In plain language that means sell some of the property to pay the tax.  The estate can sell it to you or anybody.  If you do nothing the government will take what they think is due.  Generally that is a great deal more than if you file the proper return in a timely manner.
244592
Yes, it's ordinary income. See below, from IRS Publication 523, page 4\n\nOption to buy.   If you grant an option to buy your home and the option is exercised, add the amount you receive for the option to the selling price of your home. If the option is not exercised, you must report the amount as ordinary income in the year the option expires. Report this amount on Form 1040, line 21.
31987
Here is the specific link you will need:\nhttp://www.irs.gov/publications/p523/ar02.html#d0e1931\n\nYou can exclude up to $250,000 of the gain on the sale of your main home if all of the following are true. \n\nYou meet the ownership test.\n\nYou meet the use test.\n\nDuring the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home.
470910
Assuming that your parents are domiciled and resident in the UK (which you would know if they were not) than all gifts to you will be potentailly excempt transfers.\n\nIf they gift you assets/cash and then survive for 7 years there will be no IHT. The IHT will be reduced on a sliding scale if they survive for between 3 and 7 years. \n\nTransfers to all trusts are now chargeable lifetime transfers (from March 2006) and will give rise to an immediate charge of IHT at half the full death rate. If the donor then dies within 7 years there may be a further charge but as above taper relief may apply. \n\nThere is a yearly annual exception of £3k but this is minor compared to the amounts that you are talking about.\n\nAlso remember that depending on the asset that you are to receive there may be capital gains tax to pay (not on cash, primary residence, cars, wasting chattels and other small exemptions) this can be held over though gift relief. This means that your parents would not pay the tax but when you come to dispose of the asset you would pay capital gain tax on the whole gain starting from when your parents aquired the asset.
394009
Is this a liquidating or nonliquidating distribution?  Was the land purchased inside the partnership? Or purchased by one of the partners ten years ago and contibuted to the partnership in the ten years since purchase?\n\nSorry but we really need more information to give relevant tax issues advice.\n\nEdit:\n\nOK - so a nonliquidating (or operating) distribution - Partnership continues to exist with exact same owners and percentages after distribution as before the distribution.  \n\nYou absolutely do not want a disproportionate contribution because things can get a little ugly under IRC section 751 with that so my recommendation would be distribute based on partnership percentages.  This can be done in two ways - distribute land in 50, 40, 10 amount and have 40% partner buy 10% partners share or distribute cash and land to even up percentages. \n\nLet's start with the all land distribution - You will show land removed from books (credit land) for $100,000 the opposite side will be debits to A (50%, B (40%) and C's(10%) capital accounts for $50,000, $40,000 and $10,000.  Each of the partners will reduce their outside basis by that amount (50k, 40k or 10k) and that will be their basis in the parcel of land they own.  (CAUTION: If any of these partners has an outside basis less than the land distributed they will, as someone said earlier, have a taxable event and will need to pay capital gains on the excess distribution!!) Now C sells his land to B for the 10k basis and has no taxable event and B's basis in the land becomes $50k (the same as A's) - (Another CAUTION: If B has intentions to sell the land shortly the portion purchased from C is now SHORT-TERM and will result in ordinary income!).  You say that the land is valued at $200k so the "deferred" tax will be picked up when each of these partner's sells their land and has to pick-up capital gain.\n\nNow the second option: you will make the total distribution to the three partner's 120k.  A's distribution will be 60% of the land - book value $60k, 50% of distributions; B's distribution will be 40% of land and $8k cash - book value $48k, 40% of distributions; C's distribution will be $12k cash - book value $12k, 10% of distributions.  Once again everyone will reduce their outside basis by the distribution amount and once again there will be no taxable event as long as the distributions DO NOT exceed outside basis.  Your journal entry will be a credit to land for $100k; a credit to cash for $12k; a debit to A's partner capital account for $60k; a debit to B's partner capital account for $48k and a debit to C's partner capital account for $12k. A and B will have deferred gain on the land that will become a taxable event when they sell the land for a gain.\n\nHopefully this covers it - if you have more questions - add details and I'm sure I (or one of the other tax professionals here) can clarify. (Also if you are set on keeping the land a 50/50 split just say that and I can give you the journal entry)
601790
I'm sure the laws vary from state to state. I live in Ky. and here you would be responsible for the property taxes on the home. If you're keeping the home you're not really selling it so there should be no sales tax. There will be a fee to transfer it into your name of course but with you being in Florida I can't even give you a ball park figure. It would be a good idea to call your local court house to get a better idea about things. I think the PVA office could give you the answers you need. (property value admin.)
44659
If you keep the money it's capitol gains.  If you buy another house or put it into certain accounts that give you a break it's not capitol gains anymore.  You'll need an accountant though because lots of this depends on your income and everything else involved.
197952
Okay here we go.\n\nA 1031 exchange is a method of selling one house and buying another without being subject to taxes typically imposed.  It appears your buyer is in such a situation.  When he sells his property the proceeds go directly to the Exchange Company.  When his purchase of your home is to close the Exchange company uses these funds for his down payment.  The closing statement will actually show the exchange company as the buyer.  This is not a concern for you.  \n\nGenerally this purchasing method is used when a buyer is a real estate investor and he is exchanging one rental property for a new rental property.  Again, this is an outside issue and should not impact the sale of the home or hinder the proceeds you receive.\n\nRead the contract thoroughly.  If necessary have it reviewed by an attorney.  Based on what you have said it does not appear your interest in the property will be comprised.\n\nIf you have any-other questions feel free to contact me and if I know the answer I'd be happy to help.