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?
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
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
listen, nobody likes the kid in the class that raises their hand and asks a question (related entirely to their situation) every damn day.
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!
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.
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.
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.
good info to know. and yes there is alot of meanies here and also alot of nice people too.
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.