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Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2365
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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Hi, I and my ex brought house $65,000 1974. We divorced and

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Hi, I and my ex brought house $65,000 1974. We divorced and sold our house $900,000.00 August. 2012. I used the half interested of the property proceeds buying my own house $565,000 Nov. 2012. I understood there are capital gain tax beyound $250,000. I am now just filing my delayed 2012 income tax. Can I postpone my capital gain tax due to I brought my own residental home within a year? My CPA said new law require tax payer to pay capital gain tax. I also brought $90,000.00 income property Las Vegas on July 2013. Can I also use that to deffer captial gain tax for my income property investment. My CPA said the new law does not appy all that and I need to pay my capital gain regardless. I would like to valid that. Helen

Anne :

Hi Helen

Anne :

Unfortunately, your CPA is correct.

Anne :

Please see below:

Anne :

I've been doing this job for 27 years, and I remember when you would just constantly "roll over" any gain on the sale of 1 property to the purchase of another (providing the new property cost more than the one you just sold, along with some other qualifications )

Anne :

However, the IRS did change the rules. Now you can sell your principle residence and make a gain up to $500,000 ($250,000 if single) and not pay tax on that money.

Anne :

In fact, you may qualify to use this exclusion every 2 years as long as the home is your principle residence and you lived in it for a full 2 years.

Anne :

In most cases, this has been a real advantage for homeowners

Anne :

However, I see that in your case, just the opposite is true.

Anne :

It would be nice if all of the tax changes helped everyone, however, we all know that that s not always the case

Anne :

 


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