Capitol Gains Moving Out Of State

Have lived in home 1-1/2 years which is selling for 740,000.00 New home in Taos new mexico will pay cash 211,000.00 from profit from existing home sale. Is there any way in this senario to save on the capitol gains costs?

Comments(7)

  • NewKidinTown211th April, 2005

    Maybe, why are you moving?

  • gsdp11th April, 2005

    I accepted a buy out from my employeer to leave my company.

  • jessedanielle11th April, 2005

    I am also looking to save on capital gain. i have lived in my condo for 1-1/2 years and am selling it to upgrade, having more kids. is there a way to defer the capital gain, even though it is a primary res. with out waiting the 2 years?

  • NewKidinTown211th April, 2005

    Quote:I accepted a buy out from my employeer to leave my company.Your move, then, will be related to a change in employment location?

    If so, then a reduced maximum capital gains exclusion would seem to apply to your situation. Since will have 18 months in your current primary residence when you sell, you will have satisfied 3/4 of the 2 year ownership and occupancy requirement to take the full capital gains exclusion.

    Since the full exclusion is $250K per taxpayer, then each qualifying taxpayer in your household would be eligible for a capital gains exclusion of $187,500. If your profit on the sale of your home does not exceed this reduced maximum exclusion, your profit is still tax free.

  • gsdp11th April, 2005

    I and my wife will be unemployeed, job searching. Estimated profit from sale, not counting fees etc would be 285,000.00. agent fees etc would bring it down and i estimate with cost of new home etc final profit would be at 40,000

  • gsdp11th April, 2005

    thank you very much for your information, much appreciated

  • krish18th April, 2005

    Here is a link
    http://www.irs.gov/taxtopics/tc701.html

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