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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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When you sell your primary residence, you are not taxed ...

Customer Question

When you sell your primary residence, you are not taxed on your profit if (1) you have lived in the home for two out of the last five years and (2) your gain does not exceed $250,000 as a single taxpayer or $500,000 as a married couple filing jointly. Is this true for New York. I sold my mother and step fathers house in Queens; half went to my stepfathers son who lives in Florida. I am the executor of my mothers estate and I also lived in the house. It was my primary residence.
Submitted: 9 years ago.
Category: Tax
Expert:  RD replied 9 years ago.

Yes, the gain exclusion rules is true for NY.

When did you inherit the house? Did you inherit the entire house? Did you own and live in the house for atleast 2 years before selling the house?

Customer: replied 9 years ago.
Reply to Renu V's Post: In 2000. I also lived in the house for more than 2 years. There is my mothers estate, which I am executor and my stepfather's estate. His son is the executor. When the house was sold the money was divided in half.
Expert:  RD replied 9 years ago.

If you have owned and lived in the house for atleast 2 years after inheriting than you can claim exclusion on the gain on sale of the house subject to the limitation that you had described in the post.

 

Let me know if you have any question. Bonus and Feedback will be highly appreciated!!!

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

 

 

 

Customer: replied 9 years ago.
Claiming exclusion on the gain on the sale of the house: meaning that I will not owe taxes on the money I received. I can file my regular tax form and exlude the house sale?
Expert:  RD replied 9 years ago.

Yes, if you gain is under $250K or $500K(if Married filing jointly) than it will not be taxable. You will file your regular tax form and exclude the home sale.

 

Let me know if you have any question. Bonus and Feedback will be highly appreciated!!!

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

 

 

RD and other Tax Specialists are ready to help you
Customer: replied 9 years ago.
Thank you very much. You have been very helpful. God bless.
Expert:  RD replied 9 years ago.
Thanks!