If I sell my house before the two year mark but am buying a house in the same year will I still have a penalty
343963
Yes, I just went through the same thing. I didn't make a huge profit though, so mostly it balanced out. I was so freaked out about it that I was afraid to have my taxes done. It turned out that I was all worked up over nothing.
521478
Unfortunately, you can only roll it over into another investment property (Like-kind exchange)  Applying it to your residence will not work.  You have sixty days (before or after the closing) to identify another property and 180 days to close on it.  If you held the property for investment (say yes) and held if for over 12 months, you will pay tax on it at the lower capital gains rates. If you held it for less than 12 months, it is considered ordinary income and is taxed at your regular rate.  If it is less than a year, see if the buyer will wait until the year is up.  Give them soem money back at closing to compensate them for waiting.  It could be worth your while.  To see what the tax might be, use your tax software to estimate what your tax would be.  Sorry to hear about the medical problem, I hope everything works out.  Also, ANY profit is a good profit!!!!!
670036
Did your husband use your house as collateral to purchase the truck?  A lender can go after those proceeds since he is going to get money from the house sale.  \n\nCheck with a tax person regarding purchasing a house again.  I think you have one year to reinvest that money back into a house without a tax penalty, but after that you are looking at capital gains for the profit.
283669
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.
927329
Taxes due would depend on what you sell it for.  The privacy fence and storage shed would be added to the cost of the house.  The cosmetic repairs would not be.  So you have $127K into it.  The difference between that and what you sell it for (net - you get to subtract items like realtor's commissions that you pay) is your gain.  \n\nFebruary isn't far off, so hanging in there until then makes sense.  Staying a year would make your gain long-term.  You're probably in the 15% bracket, which would mean your long term capital gain would have 5% tax applied.  So if, for example, you sold your home for $150K and paid real estate commission of $9000, you'd have a gain of $150K - $127K - $9K, or $14,000, and your tax on that would probably be $700, which isn't all that bad if you really hate it there.\n\nYou'd have to stay two full years to avoid capital gains taxes at all, and doesn't sound like you want to do that.  There is a little bit of an out here - if you move to a different area and can legitimately claim that the move was due to taking a new job, you can exclude some of the gain - basically, if you lived there a full year, you could exclude half of the gain, and just pay tax on the other half.  But if you're retired, you don't have that option.\n\nWhat you still owe, and what it is or was appraised at, make no difference to the taxes you'll pay.\n\nGood luck on selling your house quickly and at a good price.
968354
Yes, you will need to pay CGT, no matter what you do with the sale proceeds. If you have ever lived in the house, however, you will be eligible for a relief proportional to the period of ownership when you lived in it. In addition, you may be eligible for taper relief of the property as a non-business asset, which reduces your liability depending on how long you've owned it - see table in link (which is a list of FAQ for CGT you may find useful in any case)
331983
you don't want to find that out. penalties and interest can get costly. if you did this i suggest you amend the return asap.
679290
The tax situation you are referring to involves the capital gains tax on your profit (if any). You must live in the home a total of two of the past 5 years to get the exemption. This allows you to not pay tax on the first $125,000 worth of profit on your home.  There are certain exceptions to the 2 year rule, that may allow you to exclude a percentage of your profit in specific cases. \n\nRemember your profit is the difference between the net (after selling costs like real estate commissions and closing costs you pay for your buyer) and your cost basis for the house. Your cost basis is the original purchase price, plus the cost of any improvements to the property.\n\nConsult a tax professional for more specific information.
111045
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!
1032070
Depends, if you use your profits to buy another house within, I believe, 2 years, no.  Check the IRS website for time limit.\n\nIf you don't purchase another house, then yes.
990612
Was that house ever your principal residence in the last 5 years, for 2 years or more?  You get a huge tax savings if it was.  You really need to talk to either a good real estate person or an attorney/CPA and find out the tax consequences.  If it was your principal residence, you do not pay capital gains on the profit you make on the house.  If it wasn't your principal residence for 2 of the last 5 years, you do have to pay profit on the sale.  It can be complicated, you need advice from someone in your area, not a bunch of strangers off the internet.  Good luck!
1009485
In order to qualify for the 500k exemption, yiou must have lived in the home for 2 of LAST 5 years.  Since you rented it for last 12, you would be taxed on gain.  HOWEVER, if yoiu bought another property and rented it out,  (using a Sec 1031 like kind exchange), you could then stop renting it and move in, making it your primary residence.  No tax!!!
149330
I dont think you have any time.  If the house was lived in less than two years, you always pay capital gains. Always check w/ your financial advisor or lawyer, but I think the min. is two years.
125150
If you are under 59 1/2, there is a 10% penalty and the amount that you take out will be taxed as ordinary income.  There are some exceptions; i.e. if you are using the money for health reasons or to purchase your first home.  Check out publication 590 on the IRS website (www.irs.gov) or consult a tax professional.
1053387
if the intention was to make a profit then yes\n\nbut if you buy and sell home and that is how you make your living then yes (it does not matter if you live in them or how long you live in them)\n\nthere is an argument that if you are making a profit buying a house that you must consider the house inventory and then ou would pay tax on the full amount not just 50% (like with capital gains)\n\ngo to an accountant (CMA, CA, CGA); they will be able to look at your specific situation and help you
847026
shouldnt be any so long as you effectively live in one of them until of them are sold.  if you are liable to cgt then you can claim the costs of conversion as well as your original purchase price as the purchase price
900138
No not form some time.\nAs a seller you need to figures out what you can sell for and God help you if you just got the house in the last three years or have a equity line of credit, you will be up side down.\n\nIf you have some equity do be greedy the longer you wait the less you will make. \n \nThe reason for this is that the bubble is breaking checl out this web site and see why has happen and why you may get screwed.\n\nBest of luck.\nhttp://www.breakingbubble.com/index.htm