How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Stephen G. Your Own Question

Stephen G.
Stephen G., Sr Financial Expert
Category: Finance
Satisfied Customers: 4066
Experience:  Extensive Experience with Tax, Financial & Estate Issues
30050794
Type Your Finance Question Here...
Stephen G. is online now
A new question is answered every 9 seconds

I bought my home in March, 2012. I have lived in it since then

Resolved Question:

I bought my home in March, 2012. I have lived in it since then as my primary residence. If I sell it before March, 2014 will I have to pay PRO-RATED capital gains to the Fed and to the state of CA or will I only have to pay capital gains on the full amount of my gain (ie: no pro-ration)?
Submitted: 1 year ago.
Category: Finance
Expert:  Stephen G. replied 1 year ago.

Stephen G. :

Hello, my name isXXXXX & I'll be helping you today. My goal is to give you a complete & accurate answer that you can understand.

Stephen G. :

What is the reason that you would sell the home before March, 2014?

Stephen G. :

There are some exceptions to the 2-year rule which allow pro-ration of the exclusion.

Customer:

please hold

Stephen G. :

Are you sure you would have a gain if you sell your home, after closing expenses deed stamps, real estate commission, etc?

Customer:

My non-registered domestic partner (she owns 50% of the house with me) has been out of work for some time and we were thinking of moving to Texas because housing is cheaper and there is more jobs out there. I would continue to work my (self employment) job out there.

Customer:

Yes, we would have a sizeable profit.

Stephen G. :

Well, making a change because of employment is one of the exceptions that would allow pro-ration.

Stephen G. :

Well you say unregistered you mean you aren't married, is that correct?

Stephen G. :

Of course March is only 5 months away at this point.

Stephen G. :

Questions?

Customer:

We aren't married - correct. She does not have a job out there - she would get one when we get there. And only she could take the pro-ration at best by the sounds of it?

Stephen G. :

Well, I'm not so sure I'd reach that conclusion so quickly. What business/service are you engaged in as a self-employed individual?

Customer:

I work for a real estate agent. I book appointments for him to meet with clients.

Stephen G. :

Would you continue to do that for the same agent in California while you are in Texas?

Stephen G. :

Another thing.............the inability to continue to meet your living expenses due to a loss of income is given as an example of an "Unforeseen Circumstance" that would qualify to allow a pro-ration of the exclusion.

Customer:

yes

Customer:

OK. My understanding is that she could take the exclusion, but the fact that I can pay MY 1/2 of the fees means i would not be able to take the exclusion.

Stephen G. :

So, that may be what would qualify both of you to be eligible for the pro-ration.

Customer:

i mean living expenses

Customer:

Hmmm. Sounds like a gray area - and if we lose, it could get VERY expensive. Sounds like it's safest to wait until March.

Stephen G. :

Well, that may not be true as in terms of the mortgage, if she can't pay, you would be responsible and that might not be so easy for you to do.

Customer:

Actually, we can close on March 1st as we bought on march 1, 2012

Customer:

I am earning enough to pay her share of the mortgage.

Customer:

Sounds risky to me!

Stephen G. :

Even though you have an arrangement with your partner to pay 1/2, that doesn't matter if there's a problem; mortgage, utilities, & all the rest.

Customer:

OK. Thanks for the information.

Stephen G. :

Well, clearly the best and easiest solution is not to close until March 1st 2014; that could be a condition of any sale:

Stephen G., Sr Financial Expert
Category: Finance
Satisfied Customers: 4066
Experience: Extensive Experience with Tax, Financial & Estate Issues
Stephen G. and 4 other Finance Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
< Last | Next >
  • http://ww2.justanswer.com/uploads/RA/rakhi.v/2012-7-3_14374_RakhiVasavadaL.64x64.jpeg Rakhi Vasavada's Avatar

    Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    1890
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    1755
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg JKCPA's Avatar

    JKCPA

    CPA

    Satisfied Customers:

    838
    Bachelors degree and CPA with Accounting experience.
  • http://ww2.justanswer.com/uploads/starside8/2010-2-16_55433_DSCN1175.JPG Eric's Avatar

    Eric

    Financial Manager

    Satisfied Customers:

    558
    Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.
  • http://ww2.justanswer.com/uploads/FA/fastfile/2011-12-15_23139_Klein2011small.64x64.jpg R. Klein, EA's Avatar

    R. Klein, EA

    Accountant

    Satisfied Customers:

    397
    Intuit Ask a Tax Expert. QuickBooks Certified Pro Advisor (all editions)
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    324
    NASD Licensed Rep, 1997-2001, Business Attorney
 
 
 

Related Finance Questions