Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: bobbank1 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123510  
Subject: Sale of Home after Short term ownership Date: 2/15/1999 10:49 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
My neice bought a house for $30K. The next day she had a contract to sell for $125K (we should all have these problems). She closed a few months later. She never lived in the house, never collected rent, and she ended up owning it for only 3 months. She believes that if she buys another house within a set amount of time and lives in it, she won't have to pay short term capital gains tax on the $95k profit. I read IRS Pub. 523 and it seems that:

I) That 2 year turnover rule has been replaced by a $250k exclusion.....

II) She won't qualify for the exclusion because it wasn't her primary residence for 2 of the last 5 years.

III) She better set aside a nice chunk of that profit to pay the MAN at tax time.

Am I reading the law correctly? I would hate to give her bad advice (although the advice she's getting from her father and boyfriend seems to be pretty crappy). I would also hate to see her get in over her head (ie: buy something else without thinking of how she's gonna pay up). Thanks in advance for your answer.

Bob B.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


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.
Foolanthropy 2015!
Fistula Foundation: A World of Good!
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.
Post of the Day:
Berkshire Hathaway

Collected Mungofitch Quotes
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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 Glassdoor #1 Company to Work For 2015! 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.