Does anyone know what the tax penalty is for selling your home prior to living in it two years?
486912
Any profit you make will be counted as income unless you buy another house within a set period of time.
482743
No, if it is your principal residence, and you sell within 2 years.  However, if this is an investment property, and you are using that money to buy another investment property.  The transaction could be set up as Sec. 1031 exchange, which will result in a tax deferral.
834029
=as a CTP, I would recommend renting one out for the tax write offs and would move into the cabin for 2 years and then sell that which will probably be tax free if it is your principal residence for 2 out of 5 years.    So move in as you have 2 years to clean out and clean up.  Happy Thanksgiving.
887319
In my county, they hold a tax sale on a certain date after the last tax payment is due (usually it's a month after the 2nd installment was due)...and...you have 3 years to redeem your taxes (plus interest plus fees, it's not too much actually)---if in that 3 years you do NOT redeem your taxes, then the creep that "bought" your taxes PAYS your taxes and THEY OWN YOUR PROPERTY!\nWord from the wise: DO NOT fall for any "we'll pay your taxes for you" mortages, or services, etc. These are all scams. If it sounds too good to be true..>IT IS<!!!
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.
246913
Live in the home for 2 years. You can also sell the home and buy another rental property. Its called a like exchange. Those are the only two Ways that you can get out of paying capital gains. If you don't want to do that make sure you add everything you have ever done to the rental property in the last 8 years to the basis of the house. (landscaping,repairs,trips to check on the property and to sell etc.)
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.
367791
depends on your credit down payment, length of mortgage 10, 15, 30 years, and tax in your area
90899
The basic rule is if you've lived in a home for two of the past five years, you will NEVER have to pay taxes on the first $250,000 of profit ($500,000 if married and filing jointly) when it's sold.
1106504
I believe that the capital gains tax rate for Illinois is a flat 3% for both short and long-term capital gains (1 year and above).\n\nThere are two different types of exchanges that generally apply:\n1. Primary residence - section 121\n2. Investment property - 1031 exchange\n\nIf this is your primary residence, and you have lived there for 2 years, you may make up to 250K, or 500K married without having to pay a gain.\n\nAbove that amount, you have a 2 year time frame in which to invest into another primary residence.\n\nIf the property you are referring to was used as an investment(u didn't live in it) the other option is a 1031 exchange.\n\nBasically, from the time of sale of the first asset, you have 180 days in which to close and reinvest the proceeds into other investment real estate.\n\nThere are some finer points, but a 1031 exchange is a pretty common tool for investors wishing to avoid paying capital gains tax and reinvest the proceeds into another property.\n\nFor more information, feel free to visit my site: http://www.1031store.com - I'll be releasing in this coming week.\n\nYou will be able to find professionals to connect with to here:\nhttp://www.1031store.com/experts/1031_exchange_experts.php\n\nIf you have any questions about your capital gain, I have a capital gains calculator that is pretty easy to use to:\nhttp://www.1031store.com/resources/1031_capital_gains_calculator.php\n\nHope this is a step in the right direction...
227672
Actually, you have to live in the house for two of the last five years. If this is the case, then tax code allows you to keep $250K or $500K if married before capitol gains taxes apply.
659687
if you and your spouse lived in the property for 2 of the past 5 years, you each could exempt $250k from capital gains. another option is using a 1031 exchange to purchase another real estate investment that would defer capital gains and pay you tax advantaged income. consult your local independant financial advisor and you can get a list of 1031 properties. your tax advisor can project the tax for you. you should set aside the $ in a one year cd. good luck
350939
What you are referring to is for primary residences after people have lived there for 2 years... This does not apply in you situation.\n\nWhat does apply is a procedure known as a 1031 exchange.  1031 exchanges allow you to totally defer your capital gains tax by reinvesting the proceeds of your sale into another 'like kind' property.  (like-kind refers to the other property being investment use as compared to personal use).\n\nI'm finishing up the testing on a 1031 exchange site.  The information is real, and many of the test properties are available listings as well.\n\nFeel free to check the site out for the basics on a 1031 exchange.
1113697
Maybe not, depending on how much you sold it for.  The law changed a few years back - until then, answer would have been yes.\n\nAssuming you owned and lived in the home for at least two years out of the five years before you sold the house, and you didn't exclude gain from another house in the 2 years before the sale, you can exclude up to $250,000 of the gain.  If you're married and file a joint return for the year of the sale, either you or your spouse owned the house for 2 years out of the 5 before the sale, both of you lived in the house for two of the five years before the sale, and neither of you excluded gain from another house within  2 years before the sale of this one, you can exclude $500,000 of the gain.\n\nIt doesn't matter anymore for tax purposes whether you invested the gain in another home.
895813
If you lived in the property for ALL of 2002 and 2003, but not after that, then you'd have to sell by January 1, 2007 to qualify, since the specified time is two out of the five years prior to the date of sale, and 5 years prior to 1/1/07 is 1/1/02, the start of your two year period of residence.  So you're running out of time in about 6 weeks.  If you only lived there part of 2002 and/or 2003 but not after that, then you don't have the full two years residence so don't qualify.\n\nAs someone else said, the fact that you had converted it to rental property after that does complicate matters, and you couldn't exclude all of the gain if there is depreciation that you claimed or could have claimed.
168938
If you have lived in the house for at least two years you can sell it and pay no capitol gains tax on equity up to $500K.
851066
That means the loan, not the house. You probably have a prepay penalty for the first 2 years, and you'll end up paying thousands in penalties if you refi before the prepay expires. Make sure the broker meant a prepay and not something else.