Are Capital Gains Taxes Pro-Rated
I lived in my first home for 18 months. I sold it and made about 100k, which I then used to buy another home.
Do I have to pay the full capital gains taxes on the 100k? or is it pro-rated by 75% (the time I did live there)?
Thanks,
Todd
Tell us why you had to sell your house after only 18 months of occupancy?
Did you get an offer that was too good to refuse?
[addsig]
if you moved for a reason like job change, health reasons, divorce, etc, you may be able to take the prorated gain. Check with your accountant.
There was no specific reason other than I realized I could make a lot of money.
I did end up buying the new place with my future wife, so I guess that could be a reason...not sure if Uncle Sam is going to agree with that one though :-D
Hope that helps and you all can give some more insight.
Thanks for the responses...looking forward to being a great contributor to this forum
TB
Yep!
I agree with the guy above me
you have to live in the property for at least 2 years in order to claim Capital Gains Tax. Go to the IRS or see your accountant.
good luck
Thanks DontAskWhy...I just printed out the PUB 523 and it looks like I am out of luck unless my accountant can pull a fast one.
Unfortunately the deal on our new place was too good of a deal to wait the extra 6 months.
Thanks Again
Not to mention sleeping at night. Is there a good book that you can recommend that identified legitimate ways to maximize deductions?
The value of this site never ceases to amaze me. Thank you.