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Lane
Lane, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 3136
Experience:  Providing Financial & Tax advice since 1986
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We recently sold our residence in Tennessee. How much do we

Resolved Question:

We recently sold our residence in Tennessee. How much do we need to set aside for taxes?
Submitted: 7 months ago.
Category: Tax
Expert:  Lane replied 7 months ago.

NPVAdvisor :

Hi

NPVAdvisor :

I this was you primary residence you'll have to set aside ... NOTHING!

NPVAdvisor :

:)

NPVAdvisor :

actually that depends on how much gain there was

Customer:

it was about 16,000

Customer:

after the loan was paid off and all of the closing costs covered

NPVAdvisor :

If you file as married filing jointly, then up to $500,000 of gains is completely excluded for primary residence sales

NPVAdvisor :

You're fine

NPVAdvisor :

nothing to report in this case

Customer:

do we need to document it somehow?

Customer:

on our taxes?

NPVAdvisor :

No because the warding the the tax law is ESCLUDED from income

NPVAdvisor :

that means its not even recognizable (ine f the VERY few things like that in the tax code)

Customer:

ok that's great! we had issues with the gains section when we claimed insurance money on our house that was destroyed with the tornado

NPVAdvisor :

(sorry for the typos... "excluded")

NPVAdvisor :

For Federal taxes it's really a non-issue

Customer:

what about state?

NPVAdvisor :

Let me look that up for you TN has what's called LIMITED income tax, so I really doubt it, especially of TN uses federal AGI as the starting point ,,,, juuuust a sec

Customer:

thanks

Customer:

we are military and want to make sure that we don't make any mistakes with our gain. It is currently resting peacefully in an interest bearing savings account.

NPVAdvisor :

Yes TN is exempt... from their guide book on income tax: Otems excluded from income ...


11. Capital gains from the sale of real estate, stock, etc. (Capital gain distributions from
mutual funds are taxable.):

Customer:

ok so we're in the clear federally and stately

NPVAdvisor :


Tennessee taxes gains on mutual funds only

NPVAdvisor :

yep both state and federal

NPVAdvisor :

promary residenc gain is EXCLUDED, which means nothing to report

Customer:

awesome! thank you! That is such a relief. we were careful not to spend much so that we did not put ourselves in a hole!

NPVAdvisor :

Here some documentation for you:


Individual Income Tax Guide - TN.gov

NPVAdvisor :

you're good to go on this one!

NPVAdvisor :

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.


HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.

Customer:

ok great! this will bring my husband peace of mind as well. Thanks!

NPVAdvisor :

You're welcome ... have a good evening

Customer:

you as well!

NPVAdvisor :

(the links here will stay active, if you want to come back and look for reference)

NPVAdvisor :

Thanks again,

NPVAdvisor :

Lane

Lane, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 3136
Experience: Providing Financial & Tax advice since 1986
Lane and 2 other Tax Specialists are ready to help you
Expert:  Lane replied 7 months ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

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If you haven’t already done so, please rate your answer above. Or, you can reply to me using the box below.
Expert:  Lane replied 7 months ago.

Thanks so much for the Rating Amy!

If you’d like to work with me again, just say “For Lane only …” at the beginning of your question, and I’ll get the alert.

Thanks again,

Lane

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