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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29516
Experience:  Taxes, Immigration, Labor Relations
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I am trying to sell my first home that i bought as a first

Resolved Question:

I am trying to sell my first home that i bought as a first time home owner, how does this effect my taxes after I pay my 1st and 2nd mortgage off and would have money lefted over.  The property is in Dover, De.
Submitted: 5 years ago.
Category: Tax
Expert:  Lev replied 5 years ago.

LEV :

Hi and welcome to Just Answer!
Did you purchase your first home in 2008? or 2009-2010?

Customer:

The property I have a question about I bought in 1997.

Customer:

After I got married my

Customer:

husbend and I bought a house in Middletown, De. I am try

LEV :

So - you did not claim the first time home buyer's credit - correct?
Did you use the property as your primary home all that time?

Customer:

ing to sell the condo so we do not have the extra cost.

Customer:

yes. I lived there for over 11 years.

LEV :

First of all - you need to estimate your gain = (selling price) - (basis - that is mainly purchase price plus improvements and some other expenses)
If the gain is less than $250,000 - it is not taxable.

LEV :

You can exclude up to $250,000 of the gain on the sale of your main home if all of the following are true.


--You meet the ownership test - Owned the home for at least 2 years (the ownership test),


--You meet the use test - Lived in the home as your main home for at least 2 years (the use test).


--During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home.

Customer:

I orginally bought it for 65,000.00 and with the realistate market so bad it looks like i will only make a 15,000.00 profit.

LEV :

So far - based on your information - the gain is not taxable. As long as you do not have any taxable gain - you do not need to report the sale of your primary home on your tax return.

LEV :

Please see for reference IRS publication 523 page 11 - www.irs.gov/pub/irs-pdf/p523.pdf

Customer:

thank you, XXXXX XXXXX you just answered my question. thank you.

LEV :

You are welcome. I am glad for having good news for you.

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