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I am 90 years old and sold primary residence in California

Customer Question
now living in retirement paying...
I am 90 years old and sold primary residence in California now living in retirement paying monthly
Concerned with tax implications? Is there anything I can do to avoid tax?
Submitted: 2 years ago.Category: Tax
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Customer reply replied 2 years ago
primary residence escrow closed in June 2015
Answered in 19 minutes by:
8/12/2015
Tax Professional: Jonathan Tierney, Certified Public Accountant (CPA) replied 2 years ago
Jonathan Tierney
Jonathan Tierney, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 322
Experience: Tax Accountant at Praxair, Inc.
Verified

Hi, my name is ***** ***** my goal here is to provide you with the most complete and accurate as possible.

There is an exclusion of $250,000 ($500,000 for married filing jointly) of gain on the sale of one's personal residence. You would owe capital gains tax on any gain in excess of that amount. The requirements for the exclusion are: 1) You owned the home and used it as your main home for 2 of the last five years, 2) You did not acquire the property through a like-kind exchange (if you) purchased the home for cash or inherited the home you did not have a like-kind exchange), and 3) you have not taken a personal residence exclusion in the two previous years from the year in which you seek to take the exclusion.

This exclusion allows most people to avoid paying tax when selling their home. If you feel the exclusion would not completely cover your gain, please answer the following questions: 1) Are you married? 2) Did you ever own this property jointly with someone that has passed away? 3) Can you document the purchase price of the home as well as the cost of any improvements?

I hope personal residence exclusion will result in you avoiding any capital gains tax on the sale of your home. If not, please let me know and answer the above questions and I can mention several other things. Thank you for giving me the opportunity to answer your question and please let me know if I can answer anything else. Jonathan

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Jonathan Tierney
Jonathan Tierney
Jonathan Tierney, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 322
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Experience: Tax Accountant at Praxair, Inc.

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