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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Ive lived in my home now for 19 months and want to sell because

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I've lived in my home now for 19 months and want to sell because my wife has stage IV stomach cancer. However, my home has appreciated by about 200K. Can I still get the gain tax free and what proof do I need to provide in order to qualify? I'm moving from Massachusetts to California to be closer to my wife’s and my family so that they can help provide care.

MyVirtualCPA :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

MyVirtualCPA :

How are you today?

MyVirtualCPA :

First off, I am so sorry to hear about your wife's condition.

MyVirtualCPA :

However, since you are moving because of medical reasons you can exclude up to 19/24 of $500,000

MyVirtualCPA :

You would just need to show that you are moving due to medical reasons

Customer:

how do I show that?

Customer:

what do I need?

MyVirtualCPA :

Well all you would need is your wife's medical records

MyVirtualCPA :

and you don't need that unless you are selected for audit

Customer:

so on my tax return do I mention the gain?

MyVirtualCPA :

no, you would not - unless your gain was more than your allowed exclusion

MyVirtualCPA :

which it will be.

MyVirtualCPA :

if it's $200,000

MyVirtualCPA :

You made a good investment in that home, if it appreciated that much in 19 months!

Customer:

but wouldn't my exclusion be 395K based on 19/24. Did I misunderstand that?

MyVirtualCPA :

I was assuming your gain is $200,000

MyVirtualCPA :

which is under 19/24 of $500,000

Customer:

o.k. so I will not have to mention the gain on my tax return because it will be under the 19/24 of 500K. All I need is my wife's medical records as proof if I'm audited

MyVirtualCPA :

That is correct

Customer:

cool, thanks

MyVirtualCPA :

You're welcome. Is there anything else you need today?

MyVirtualCPA :

If not, please rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

nope that's it, thank you for your help.

Megan C and other Tax Specialists are ready to help you
Thanks, Juan for your positive rating. Please come back and visit MyVirtualCPA any time you need a tax, finance, or social security question answered. It was a pleasure working with you today.

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