Have a Tax Question? Ask a Tax Expert
Hi and welcome to Just Answer!Did you purchase your first home in 2008? or 2009-2010?
The property I have a question about I bought in 1997.
After I got married my
husbend and I bought a house in Middletown, De. I am try
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?
ing to sell the condo so we do not have the extra cost.
yes. I lived there for over 11 years.
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.
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.
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.
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.
Please see for reference IRS publication 523 page 11 - www.irs.gov/pub/irs-pdf/p523.pdf
thank you, XXXXX XXXXX you just answered my question. thank you.
You are welcome. I am glad for having good news for you.