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March 19, 2008
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 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?
Comments
Your accountant is correct. All you have to do is maintain the property as your primary residence for 2 of the last 5 tax years and you will not be taxed on the Capital Gains up to 500K for a married couple.
No need to reinvest in another property to avoid the tax.
Posted by: guest at March 19, 2008 5:33 PM
Why do you think people on a blog are going to know more than a cpa?
If you don't like the accountant you can get another one.
Posted by: Ysabelle at March 19, 2008 5:43 PM
You and your stank european-born husband and your issues with your pathetic 16x40 house with its wet basement next door to your besties are so annoying. Stop asking questions here and stick with the professionals you have hired. Why won't you listen to your inspector, lawyer, accountant? Go away.
Posted by: guest at March 19, 2008 5:58 PM
Oh god, not you again. Yawn.
Posted by: guest at March 19, 2008 6:44 PM
Hey, If you don't like a post, don't read it and don't respond.
All these questions (even from frequent posters) provide information for the rest of us. 5:58, I'm much less interested in your attitude problem.
Posted by: guest at March 19, 2008 8:44 PM
Thanks 8:44 - yes, the hostility on this list is out of control. We actually have been thinking of getting a new accountant (he screwed up last year but we have not had time to find someone new) but have to make a decision fast about selling our place, so figured it was useful to post on a list of people who are presumably very knowledgeable about real estate instead of scrambling to find a new accountant which we'll probably do once we get through this big real estate transaction.
Truly, what is the point of just saying mean things?
Every time someone's critiqued my posts, several people have pointed out that the discussions have yielded info useful to others. I think the meanies are the ones who should go away!
Posted by: housesearcher at March 19, 2008 9:30 PM
People feel important by belittling others. Thats why they will make rude, obnoxious comments rather than ignore the post if it bothers them. There are plenty of A-holes in this world...Many of them have computers and internet access.
Posted by: guest at March 19, 2008 9:40 PM
"what is the point of just saying mean things?"
The point is to get you to stop the inane posts. Why do you insist on calling people mean just because you don't like their advice? The "meanies" like me have been telling you to walk away from the house. Turns out we were right.
"I think the meanies are the ones who should go away!"
Anyone who sounds so much like a 4 year old cannot handle a house let alone one with these problems.
Posted by: guest at March 19, 2008 10:02 PM
10:02 - We are not walking away from this house per se - we are waiting to find out if the title is clear. If it is, we're buying it. If it's not, we're selling our apt anyway and continuing our search for a house. I guess "meanies" was an unfortunate choice of word, but my point is that people who are just mean and angry-sounding don't contribute anything useful to this list. Even among those who have cautioned us against this house, there are plenty who did so in civil and truly helpful ways (i.e. warning that they had considered narrower homes and found that they preferred wider ones). It's not that I don't like the advice - all *constructive* advice is appreciated (and I have considered it in my research), but ultimately anyone's choice to buy a home is deeply personal and to call people names - on an *anonymous* blog and insult their character, and use words like "inane" (when others have stated that the discussions are helpful) strikes me as bizarre at best, but these vitriolic unconstructive posts also clog this list - kind of like spam. If you don't like my posts, don't read or respond to them - please don't hog space on threads that others are reading to seek constructive discussion.
Posted by: housesearcher at March 19, 2008 10:55 PM
housesearcher why do you try to make contact and converse with people on a free website
please try and keep to topic items that are as brilliant as the musings of 10:02
Posted by: guest at March 19, 2008 11:01 PM
11:01 - You know, this is not the only listserve I use, and what can be nice about listserves is when strangers genuinely help each other out by sharing advice, experiences, etc. which can in the best of cases create a sense of community. I do feel that this happens on this list, and for that, am grateful that is exists. I guess it's just unfortunate that the list gets hijacked by all the bitter nasty posts (certainly not just in response to my posts - my jaw has dropped over the gratuitous nastiness on some other threads). I must say, I don't see that happen on the other listserves I visit. Maybe NYC real estate just brings out the worst in some people...
Posted by: housesearcher at March 19, 2008 11:08 PM
some people are meanies, yes, but i think what is at the bottom of some of the more targeted responses to you lies in the expectation that the "advice of strangers" thing should go both ways. you seem to ask for a lot of advice that seems fairly remedial (i.e., readily google-able) as well as a lot of advice that seems to demand a deep inquiry into some very specific details about your particular situation. this is all fine, if a little tedious. but what irks is that i've never, ever, seen you post a response to anyone else who asks a question, or post a thought in a thread. in sum, you come across as a rather needy "taker" and never a "giver." i'm sure you're perfectly nice IRL -- you just come across as kinda annoying in your posts.
Posted by: guest at March 19, 2008 11:42 PM
I liked the post and was hoping to learn something from the responses. Instead all I get to read is a bunch of people picking on the poster. I'm just sorry the hecklers are too afraid to post as anything but "guest". I wish this site would require registration for all posters, it would help keep the bulls--t factor to a minimum.
Posted by: bklyn_girl at March 19, 2008 11:56 PM
11:42 - OK, fair enough. But the reason for my current "neediness" is precisely a lack of experience in undertaking a major renovation such as what we're planning (hence a lot of questions). So far, our renovation experience, or for that matter, real estate experience has been very limited to our apt which was move-in condition though we did gut a half bath to make it full. So I have not had much experience from which to offer sage advice and I don't want to just spout ignorant speculation. But in the future, I should be much more experienced and would of course share that experience in the same way that others on this list generously have. So, thanks to all who have offered advice and I am looking forward to being able to reciprocate in the future.
Posted by: housesearcher at March 19, 2008 11:57 PM
good info to know. and yes there is alot of meanies here and also alot of nice people too.
Posted by: armchairwarrior at March 20, 2008 12:21 AM
You say that those who find your posts boring should just skip over them. Take your own advice. One of the annoying things about you is that you insist on writing a 1000 word response to everyone.
Posted by: guest at March 20, 2008 12:31 AM
housesearcher, I think these are trolls who get off on getting a response. The more you respond to their mean comments the more mean comments you will get.
Posted by: guest at March 20, 2008 9:31 AM
Hey housesearcher.
Just get a new login. Im sure once you do, it will take a while for the haters to catch on.
Then, get another one.
Posted by: guest at March 20, 2008 10:02 AM
Got nothing but love for housesearcher, BUT....
you always come here and say, "the professionals say XXX, but I'm no so sure" and in every instance we all agree that the professionals WERE RIGHT!
I can tell by the volume of stuff you post here that you do your homework! So trust your homework. Once you've asked x number of contractors and architects, you know more than we every will about this house you're look at. Ditto Realtors. Ditto your accountane (yes, that rule no longer exists). Trust your homework and move on!
Posted by: guest at March 20, 2008 11:06 AM
listen, nobody likes the kid in the class that raises their hand and asks a question (related entirely to their situation) every damn day.
Posted by: guest at March 20, 2008 11:10 AM
unbelievable. Fair question, ridiculous responses. Back to the subject: as a couple your capital gains can be as high as 500K (250 for a single). In order to receive this you must have resided in this home 2 out of the last 5 years as your primary residence (this is important). Nothing states you must then reinvest this in any time period. But if you do invest n a new home you can't receive non taxble capital gains until you reside in your new home for the next 2 out of 5 years. hope this helps and tell the other knuckleheads to get a life. good luck
Posted by: guest at March 20, 2008 11:12 AM
Housesearcher, you are right to double-check on your accountant. I was audited and many of the deductions he said were ok for my job were not. It was a small penalty on top of the tax that I owed.
I believe that 11:12 is correct about the tax free gain.
P.S. I am proud to pay my taxes in this country
Posted by: guest at March 20, 2008 3:06 PM
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.
Posted by: guest at March 20, 2008 3:51 PM
The trolls on Brownstoner must be the saddest trolls I've ever seen.
Posted by: guest at March 20, 2008 4:37 PM
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.)
Posted by: guest at March 20, 2008 4:46 PM
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.
Posted by: guest at March 20, 2008 4:46 PM
4:46 = sad troll
Posted by: guest at March 20, 2008 5:29 PM
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!
Posted by: housesearcher at March 20, 2008 9:44 PM
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.
Posted by: guest at March 20, 2008 11:35 PM
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.
Posted by: guest at April 10, 2008 2:11 PM
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.
Posted by: guest at April 10, 2008 2:12 PM
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