Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: Conspirator23 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121563  
Subject: Does home sale exclusion apply to me? Date: 5/2/2000 8:04 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
TMF Taxes gave a number of excellent examples on who does and who does not apply for a Home Sale exclusion. On first glance, methinks that we do not. However, on second glance, methinks that we qualify for a partial exclusion. I'd like to get some feedback on that. Here's the scenario:

We purchased our home on in August of '97. I took a job in another state *almost* two years later, and we moved in May of 99. Rather than sell the home (we figured we would return after a few years) we rented the house out (at a significant loss. Just enough to cover our new lower living expenses, rather than the old mortgage) to family.

This year, when we filed our 99 return, we reviewed the IRS rules and determined that we passed the test for our rental activities being not-for-profit. Thus we applied the rent to the misc. income line on the 1040, skipped depreciation, and took our mortgage interest as an itemized deducation as normal.

Well, the family members are now moving on, and rather than go through the trouble of renting the place out, we've decided to sell. (Side note: No, I haven't been promoted to putting the almonds on the cookies. We've decided that the house itself is not a keeper.) What I'm wondering is that since we passed the test and the house never became a rental properly, do we qualify for a partial exclusion due to the employment change?

Otherwise, the only thing I can think of that would qualify us for the exclusion would be to move back in for 3 months. :-)
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Russia Collapsing Again?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement