Capital gains on sale - how long do you have to reinvest proceeds?
We are selling our apt but now are having title problems with the house we are planning to buy – so the house could fall through, but we’re probably going to go through with apt sale anyway. Question is: is there a time limit within which we have to invest capital gains into another primary…
We are selling our apt but now are having title problems with the house we are planning to buy – so the house could fall through, but we’re probably going to go through with apt sale anyway.
Question is: is there a time limit within which we have to invest capital gains into another primary residence? That is, if we don’t buy a house within 1 year, will be charged tax? Our accountant said this rule no longer exists, so we have no time limit – but I just wanted to double-check.
Also, is the maximum deduction of profit (before capital gains tax kicks in) $500K for a couple?
I recently sold my house (a primary residence) after my wife passed, that was earlier in the year transferred to a trust on the advice of a lawyer as my wife was gravely ill, to protect it against medi-cal costs for her long term care. Now, speaking with a cpa, I’ve discovered I no longer qualify for the 500k deduction, much less 250k (for just myself), since the house belonged to a trust. The cap gains were a little under 500K, and I thought I wouldn’t even have to report it on Sched D, much less pay anything.
My question is, what is the level of risk if I go ahead and not report it, assuming I would still qualify for the 500K exclusion? Would it be better to just go ahead and pay for 250K cap gain (as single)? It was not in a trust for much more than a year, and my wife had passed the year before.
I recently sold my house (a primary residence) after my wife passed, that was earlier in the year transferred to a trust on the advice of a lawyer as my wife was gravely ill, to protect it against medi-cal costs for her long term care. Now, speaking with a cpa, I’ve discovered I no longer qualify for the 500k deduction, much less 250k (for just myself), since the house belonged to a trust. The cap gains were a little under 500K, and I thought I wouldn’t even have to report it on Sched D, much less pay anything.
My question is, what is the level of risk if I go ahead and not report it, assuming I would still qualify for the 500K exclusion? Would it be better to just go ahead and pay for 250K cap gain (as single)? It was not in a trust for much more than a year, and my wife had passed the year before.
I’ll add a comment, even though the thread is done. Housesearcher, I was one of the people that knew right away when reading your post that you were considering the narrow house (near your friends) but there was now a title problem. I previously posted responses to your questions that you specifically thanked.
And, I just wanted to tell you not to let the trolls get to you. There’s nothing wrong with seeing what people have to say and it’s clear you take the advice here with a grain of salt. I occasionally post questions, too, and you know what? Sometimes no one ever responds to a post, and sometimes I get lots of conflicting advice, and sometimes I get helpful advice.
I think there’s one or maybe 2 trolls here who have nothing better to do than to pick on a stranger who is doing no harm. Someone actually criticized you for not posting “answers” to other people’s questions — give me a break! Of course there’s no reason to post if you don’t know the answer, and there’s nothing wrong with posting any questions you have. Maybe people will stop answering, but you have every right to ask questions. And I believe most of us here are nice people who aren’t so insecure we need to attack someone who has alot of questions.
OK, advice for how to avoid snarkiness useful, but re: questioning professionals – the problem is I’ve found they give *conflicting* advice sometimes (or wrong advice, as 3:06 pointed out).Hence the usefulness of this list to seek advice from people who have *actually* been through what we (and others) are planning, and who presumably have nothing to gain by giving wrong advice (which is not nec the case with some professionals who might be seeking to profit from you). Googling cannot always be trusted, so I really do appreciate the helpful advice some have shard. Glad some find the posts/threads helpful. Trolls are just sad but I guess one must simply ignore them. OK, I think this thread is done!
4:46 = sad troll
The only thing sad are the one’s complaining about Trolls. Obviously, they read the supposedly Trolls postings instead of ignoring it and even responded to it! Can someone say “stupid?”
If you feel the post is either innane or Trollish…. then DON’T READ IT. You have that right.
2 comments:
1) Google first – you’ll get more accurate and complete advice (like on your tax question) than you usually get on here anyway.
2) People can find you annoying because you DO have a login. If you posted as guest, people wouldn’t assume it is the same questioner all the time. Obviously, people prefer to read guest posts – they don’t get annoyed.
Why do you think most of us post as “guest” and would never think of doing anything else (even when we are being helpful and not mean?) You chose to create an identity, an ego, if you will, when you choose a login name and keep using it. So some people start to get a sense of your personality, and it rubs some people the wrong way (that’s life – it may not be nice, but it is true most places.) So, post as guest – and you won’t get as much snarkiness. Also, refer to my first comment. (And, if you won’t google first, at least just ask the freaking question and don’t take the stance that you don’t trust the professionals you hire. That stance does irritate a lot of people.)
The trolls on Brownstoner must be the saddest trolls I’ve ever seen.
I’m still looking, but I’ve found housesearcher’s past posts to be helpful in answering things I’ve wondered about. Seriously, its the internet, not your living room, you don’t have to read every thread! Just relax.