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I am trying to find a way to sell my home in SC,but not

Customer Question
I am trying to...

I am trying to find a way to sell my home in SC,but not incur a big increase in my taxes for that year. I am 70 years old and live mainly on Social Security income. I have to supplement that with my retirement income which dwindling rapidly.

Accountant's Assistant: Because real estate law varies from place to place, can you tell me what state this is in?

South Carolina, but I live in Florida,

Accountant's Assistant: Has anything been filed or reported?

No. The house is currently rented and has a two year lease, with another year to go. That is when I want to sell it.

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

When I bought my house here in FL Itax bill that year. paid cash and took the money out of my retirement fund and forgot I would have to pay taxes on that money when I withdreww it. I had to pay a $60,000 tax bill that year.. That is why I am so concerned about the taxes if I sell my South Carolina home..

Submitted: 8 months ago.Category: Tax
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Answered in 7 minutes by:
9/15/2017
Tax Professional: Robin D., Senior Tax Advisor 4 replied 8 months ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 17,871
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 8 months ago

Because you have used the property for rental purposes you will have to report the sale and you will pay tax on any gain.

The gain is the difference in the original price less depreciation you have claimed plus improvements and the sale price less costs to sale.

The only way you could defer (not avoid but defer tax to later) would be to use a 1031 exchange but that requires you set up for a 3rd party to receive the money from the sale and you purchase another like property. Like means you would use the replacement property for income too .

I responded knowing this would not be exactly good news for you but you need to know.

A positive 5 star rating is appreciated so I am credited for assisting.

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Category: Tax
Satisfied Customers: 17,871
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Experience: 15years with H & R Block. Divisional leader, Instructor

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