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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7097
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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I have a quick tax question that may impact when I decide to

Customer Question

I have a quick tax question that may impact when I decide to close on my house here in STL. We recently sold our house in Nashville and have not lived in it for a full year. We expect to make a profit on the home. I have used other funds to put down on my house in STL with a close date of April 28, but the funds from the Nashville home won’t be available until that home’s closing May 16. So, based on this..
1) Will owe capital gains regardless of what I do and if so how much?
2) Should I push back the closing of my STL home so I can use the proceeds of the Nash home to roll into that?
3) Is there any place else I can put the money in order to avoid capital gains?
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: no
Submitted: 2 months ago.
Category: Tax
Expert:  Stephen G. replied 2 months ago.

Hello, my name is***** goal is to give you a complete & accurate answer. I am working on your request now & I will respond as soon as possible.

Expert:  Stephen G. replied 2 months ago.

Why are you moving to St. Louis?

What you do with the proceeds of your Nashville sale won't have anything to do with the taxable capital gain.

How much do you expect the capital gain on the sale of Nashville to be?

Steve G.

Customer: replied 2 months ago.
I am moving to St. Louis for a job. We had $40K equity and we expect to make $40K so we would have $80K total.
Expert:  Stephen G. replied 2 months ago.

Well, the good news is that due to the primary residence exclusion and the fact that you are moving to St. Louis because of your job, you will most likely have no capital gains tax to pay on the sale of your home in Nashville. The reason is that when you move in connection with a job location change you get to prorate the exclusion and since you said "we" I presume you are married which means even the reduced exclusion will far exceed any gain on the sale of your Nashville home.

Steve G.