In 1994 I purchased a house for $125,000. Yesterday, I sold the house for $231,000. This means I have about a $106,000 capital gain that I now have to pay taxes on.I know there are lots of rules and strategies. I am in the military and my wife and I only make about $50,000 combined yearly income.I've considered giving $10,000 to each of my 2 children. How does one prove those gifts? Does it have to go into a bank account designed for them and left there? There are also tax rules concerning purchase of new property...Does anyone have a name for a good tax advisor?
In 1994 I purchased a house for $125,000. Yesterday, I sold the house for $231,000. This means I have about a $106,000 capital gain that I now have to pay taxes on.Before we get carried away, let's make sure you have a problem. Did either you or your wife use this house as your primary residence for 2 of the last 5 years? If so, none of the gain will be taxable; in fact, you don't even have to report the sale. See IRS Publication 523.If you still think you have a problem, let us know.Phil MartiVITA Volunteer
To find a tax pro in your area, check out www.naea.org or www.natptax.com.
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