- quote -

.....on the first $20k or so, 15% on the rest.

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.

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"Chris P." <saint[at]quake.nyct.net> wrote:

- quote -

To qualify for the exemption of $250k ($500k if married
filing joint), the house has to have been your primary
residence for 2 of the last 5 years. There are a few
exceptions to this rule. I would suggest you pull up the
irs.gov website and read to see if you meet any such
exemption. Considering the high tax bracket this will put
you in plus your state tax, it might be worth considering
waiting until after it's been your primary residence for the
2 years.

Mike Lewis, CPA

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"Chris P." <saint[at]quake.nyct.net> wrote:

- quote -

Exactly what waiver is that?

- quote -

All of it. 15% of the gain.

- quote -

You have a serious misconception about the tax law.
Unless extenuating circumstances you didn't mention exist,
you need to live in the home for at least two years to
exclude $250 of gain.

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.

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"Chris P." <saint[at]quake.nyct.net> wrote:

- quote -

There isn't such a thing.

- quote -

If you actually close before May 2004 you will have to pay
tax on the entire amount of the gain.

*Actually you only have to wait two years (and a day to be
sure) from the date you purchased the home

--
Paul A. Thomas, CPA
taxman[at]negia.net

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saint[at]quake.nyct.net (Chris P.) wrote:

- quote -

To qualify for the exclusion, you must OWN and OCCUPY the
house for two of the five years prior to sale. You do not
meet these qualifications.

Based on what you have written (or not written) you do not
meet any of the exceptions to meeting the qualifications.
Why are you selling/moving? Employment location changed?
Medical reasons? Unforseen circumstances?

At this point, it looks like you will pay capital gains tax
on the entire gain (less commisions and closing costs) from
this sale.

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- quote -

If you are just selling to keep the profit, none of your
gain is excludable, but it is long term so you are looking
at 5% cap gains tax.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

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I bought my first house in Staten Island, New York on April
2002. Purchase price was $530k. I have a buyer for $780k.
Do I qualify for first home sell tax waive? If not how much
gains tax of $250k do I need to pay? My salary earning for
this year will be about $10k - $15k.

Thank you in advance.
Chris P.

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