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Author: cfayed One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: Sold house in May/2003, now what? Date: 11/28/2003 10:04 AM
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Hi Bob,

There's no longer a way to defer gain on the sale of your personal residence. But if you own and live in your home as your main home for 2 years during the 5 years preceeding the date of sale and you haven't excluded gain on another home within 2 years, you can exclude $250,000 of gain ($500,000 if married filing jointly). And what's more you can do this every 2 years if you want to move that often.

I hope you meet the 2 year requirement but if you don't and your move was due to employment or health reasons you can still exclude part of the gain.

If you aren't able to exclude gain you will have no choice but to report the gain on your tax return. If you've owned it more than 1 year it will be a long term capital gain.

When computing your gain be sure to adjust both your selling price and the price you paid. Such things as real estate commissions, title fees, etc. are deducted from your selling price. You add to what you paid for the house most of the fees you paid when you went through excrow.

Carole
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