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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11143
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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We sold our house in NY in 2009 and bought an RV. We then

Customer Question

We sold our house in NY in 2009 and bought an RV. We then went out to Ca to visit old friends, we are from Ca. We stayed that winter in Arizona and went to Brunswick Me for the summer and stayed at a home that the wife owned. We then became snow birds and drove the RV to Florida and stayed in an RV park for the winter. We repeated this in 2011, 2012 and 2013. The expense of this was getting to us so we decided to sell the house. We have finely sold the house in Maine. We are still in the RV park but intend to use the funds from the sale to buy a home here in Florida. What are the tax implacation on the Maine sale.
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
I dont understand the password ***** after the e-mail address WHAT PASSWORD????
Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Tax.appeal.168 replied 1 year ago.

In order to better assist you, please provide the following information;

1) When was the house in Maine sold?

2) Did you live in the Maine house 2 out of the 5 years prior to the year of sale? The two years did not have to be consecutive months.

There are strict guidelines regarding the home sale exclusion. IRS Pub 523 provides detailed information regarding the sale of a home and the exclusion amount. In order to qualify for the home sale exclusion, the following requirements must be met;

Eligibility Step 2—Ownership Determine whether you meet the ownership requirement. If you owned the home for at least 24 months (2 years) during the last 5 years leading up to the date of sale (date of the closing), you meet the ownership requirement.

Determine whether you meet the residence requirement. If your home was your residence for at least 24 of the months you owned the home during the 5 years leading up to the date of sale, you meet the residence requirement. The 24 months of residence can fall anywhere within the 5-year period. It doesn't even have to be a single block of time. All you need is a total of 24 months (730 days) of residence during the 5-year period.

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Main Home If you own or live in more than one home, the test for determining which one is your main home is a “facts and circumstances” test. The most important factor is where you spend the most time. However, other factors can enter the picture as well. The more of these that are true of a home, the more likely it is your main home: The address listed on your: 1. U.S. Postal Service address, 2. Voter Registration Card, 3. Federal and state tax returns, and 4. Driver's license or car registration. The home is near: 1. Where you work, 2. Where you bank, 3. The residence of one or more family members, and 4. Recreational clubs or religious organizations of which you are a member.

Link to IRS Pub 523:

http://www.irs.gov/pub/irs-pdf/p523.pdf

Expert:  Tax.appeal.168 replied 1 year ago.

As for the tax ramifications, that depends on whether or not the Maine home was considered your Main home and if you meet the qualifications to exclude up to $500,000 of the sale price. If the Maine home does not meet the qualifications as your main home, then you cannot exclude part of the sales price. However, if it does meet the qualifications, married filing jointly, you can exclude up to $500,000 of the sales price.

Capital gains tax is what will come into play if any taxes need to be paid. After you answer the questions that I asked previously, I will explain in more detail how capital gains tax may or may not apply to your situation.

Customer: replied 1 year ago.
We lived there a total of two years. The house was owned since 1995. The sale price is $51,500
Expert:  Tax.appeal.168 replied 1 year ago.

Based on the information provided, you will qualify for the $500,000 home sales exclusion.

You typed that the sale price is $51,500. Is this correct?

You report the sale of the home on the Schedule D and Form 8949.

Customer: replied 1 year ago.
I just recently got Florida plates for the car and a Florida drivers license. Over this time we had NY plated and drivers license's.
We used our son's mailing address in NY and he would forward our mail. Since we were in many locations while out with the RV that only made since.
Expert:  Tax.appeal.168 replied 1 year ago.

Is the sales price of $51,500 correct? That seems very low for the sale of a home. Whether the figure is correct or not, meeting the qualifications, you are eligible to exclude up to $500,000 of the sales price.

Customer: replied 1 year ago.
The house was jointly owned by her and her brother as tenants in common.
Expert:  Tax.appeal.168 replied 1 year ago.

A few things here;

1) Who is "her"? Your wife?

2) Knowing that it was a tenants in common situation up front would have been helpful.

I'm going to opt out at this point and release the question back into the question queue.

Customer: replied 1 year ago.
Her is the wife
Expert:  Lane replied 1 year ago.

Hi,

...

Different expert here

...

It looks as if, yes, you will be able to exclude the gain on sale of the home in Maine

...

The bot***** *****ne is that you need to have lived there for ANY 24 months during the 5 year period before the sale date.

...

And this can be any 24 months (and they don't have to be connected, one month after the other).

...

I'm going to make an additional services offer form the smallest amount possible here ($5). It may be more efficient to speak over the phone.