Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

If I sell my primary house within the first two years, will…

Customer Question
If I sell my...

If I sell my primary house within the first two years, will I have to pay capital gains on the profit I make?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

I bought my house in August 2016. In January 2018, somebody knocked on my door and said they want to buy my house because they are turning it into a development for a doctors office with the land behind me in my house. I’m going to make about $60,000 more than what I paid for the house in 2016. I was reading about it and it said that within the first five years if you sell your primary house, you must live there for two of the first five years to avoid capital gains. This is the primary house and I did not buy it for an investment property. It just so happened that I made quite a bit of money in the first two years.I didn’t know if I need to wait until August of this year to close or if I could close now and avoid the capital gains.

Accountant's Assistant: Is there anything else the Accountant should be aware of?

I don’t think so

Submitted: 30 days ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 2 minutes by:
3/24/2018
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 30 days ago
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,164
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
Verified

Hello!

My name is***** will assist you today.

Please give me one moment while I review your question and type my initial response

Ask Your Own Tax Question
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 30 days ago

You do need to wait until you have lived in your home for the full two years as your primary residence. From what you have stated, once you do live in the home for at least two years then you would qualify for the exclusion.

___

When the home is your primary residence for at least two years of the previous five years , you are able to exclude up to $250,000 if you file single and $500,000 if you file married filing jointly from your income.

____

This exclusion is under 26 U.S. Code § 121 - Exclusion of gain from sale of principal residence

https://www.law.cornell.edu/uscode/text/26/121

"(a)Exclusion

Gross income shall not include gain from the sale or exchange of property if, during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 2 years or more."...

Ask Your Own Tax Question
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 30 days ago

Please let me know if this has answered your question or if you have any additional questions.

When you have no further questions a positive rating of 5 stars is much appreciated.

Thank you!

Ask Your Own Tax Question
Was this answer helpful?
Ask Chad EA, CFP ® Your Own Question
Chad EA, CFP ®
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,164
2,164 Satisfied Customers
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA

Chad EA, CFP ® is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,451 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Employee has 1 dependent his gross income is $220.00 how
employee has 1 dependent his gross income is $220.00 how much fed taxes ss taxes, medicare, and state taxes comes out please break it down by dollars and cents please give me the net pay thanks … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,939 satisfied customers
I am 77 and unmarried, no children. My gross income is
I am 77 and unmarried, no children. My gross income is $3500. I understand that this means I do not need to file. Do I have to do anything? … read more
abci168
abci168
Principal
27 satisfied customers
My married filing jointly Income is approx. $147,505 – Yes I
My married filing jointly Income is approx. $147,505 – Yes I itemize. When I enter W2G gambling winnings up to $2300 with equal $2300 losses, my tax liability is unchanged. When I enter W2G gambling w… read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
156 satisfied customers
I used turbo tax for married filing jointly. I have a total
I used turbo tax for married filing jointly. I have a total income of $108,246 of which $48,808 is from my wife (part time RN), $50,000 from my consulting, $9438 from early with drawl from 401k and 36… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,939 satisfied customers
Using the 7.5% of gross income for out of pocket medical
using the 7.5% of gross income for out of pocket medical expenses, can I use any part of my assisted living rent? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,939 satisfied customers
I filed 2 years worth of taxes, married filing jointly. I
Second opinion] I filed 2 years worth of taxes, married filing jointly. I filed injured spouse for both but there are no exemptions listed either years forms for me. All the exemptions are under my hu… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,939 satisfied customers
Iowa Income Tax. Is 100% of capital gains on the sale of a
Iowa Income Tax. Is 100% of capital gains on the sale of a rental property deductible if the requirement is met for hours spent for management of the property? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,939 satisfied customers
My adjusted gross income is $13,539. $8560 from a pension
My adjusted gross income is $13,539. $8560 from a pension from my ex-husband, $14204 from SS and $4706 from a bank I retired from which I will no longer be receiving. Do I need to pay taxes on my Soc … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My gross income is 92K, my net is 76k -- My question is if I
My gross income is 92K , my net is 76k -- My question is if I can start an ira account I( I am over 65 --68-- ) will it reduce my tax burde of 4900.00 as it is now . Married filing jointly. Wife is 70… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
It there a way to file married filing jointly on federal but
It there a way to file married filing jointly on federal but file state separately. … read more
Carter McBride
Carter McBride
LLM
966 satisfied customers
My husband and I file married filing jointly last year and
My husband and I file married filing jointly last year and this year but the tax program is asking for his adjusted gross income for 2016 I entered adj gross income of the 2016 tax return line 37 and … read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
156 satisfied customers
Married filing jointly, ages 64 and. Assume eligibility for
Married filing jointly, ages 64 and 69. Assume eligibility for traditional IRAs. Contribute maximum 6500 + 6500 to traditional IRAs for 2017 return on April 17, 2018. Take full distributions of 6500 +… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,294 satisfied customers
I'm married, filing jointly, with our combined income not
I'm married, filing jointly, with our combined income not passing 120,000. I had to pay in this year for taxes. I know the tax law is changing for 2018, but I was wondering what I could do to ensure I… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
What would the rate of capital gains tax on income property
what would the rate of capital gains tax on income property held for 25 years by an owner who of late had and will have income of less than20,oooIt is also my understanding we (my brother and I) are e… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
The standard deduction is 12,700 for married filing jointly
The standard deduction is 12,700 for married filing jointly why does the 1040 form say 4050? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,939 satisfied customers
I NEED MY 2016 ADJUSTED GROSS INCOME. I NEED GROSS INCOME TO
I NEED MY 2016 ADJUSTED GROSS INCOME JA: The Accountant will know how to help. Please tell me more, so we can help you best. Customer: I NEED GROSS INCOME TO FILE 2017 TAXS JA: Is there anything else … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,939 satisfied customers
I am 66yrs old married filing jointly $70.000 income. Will I
I am 66yrs old married filing jointly $70.000 income. Will I pay taxes on my SS benefits of $24.000 … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
A law firm (which is a Schedule C filer) has gross income of
A law firm (which is a Schedule C filer) has gross income of 1,000,000 & Net Income 0f 280,000. In the tax reform just passed, there is a 20% deduction for law firms that have income less than 315,000… read more
Chad EA, CFP ®
Chad EA, CFP ®
CERTIFIED FINANCIAL PLANNER TM, Professional
2,164 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x