Red Scholefield wrote:
- quote -

Ok, maybe make it real simple. As long as you do' t sell it
for more than 250,000$ (or 500,000 if jointly owned), no
reporting, no fuss, no muss, no tax.

If more than those figures, then you need to see what the
gain is. "Renovations" in the order of "improvements" are
added to the cost (basis) of the home. Those "renovations"
which are plain ole repairs are not. Add cost of selling
the property to the basis also, then subtract from sale
price. If gain is then more than .... (see above)

If more, then capital gain.

Cheer$,
Harlan Lunsford, EA in LA

p.s. you're not leaving Florida, are you?

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"Harlan Lunsford" <hlunsfordns[at]bellsouth.net> wrote:
- quote -

I am selling my present home (that we have lived in for 30
years) and purchasing another which will be our home.
Neither are or were rentals.

Red S.


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Red Scholefield wrote:

- quote -

There are no regulations to cover that - since the
"replacement residence" rule was repealed in 1997.

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"Red Scholefield" <redscho[at]bellsouth.net> wrote:

- quote -

First, if you use the house as your primary residence for 2
of the last 5 years, up to $250,000 if single and $500.000
if married filing joint of any capital gain you might have
is excluded...as in forever. Best thing since sliced
bread:-]

You still must determine your gain if your gain exceeds
these exclusion amounts. I advise all my clients to keep all
the paperwork from the closing plus any expenditures made
that one would consider improvements that either enhance the
value of the house or prolong their usefullness. The
"improvements" would include adding a new room, adding
siding, etc. It would not include maintenance such as
painting,, etc.

Mike Lewis, CPA

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"Red Scholefield" <redscho[at]bellsouth.net> wrote:

- quote -

They don't. Not a part of the equation.

- quote -

Improvements add to basis. The rest is pretty much irrelevant.

- quote -

Real estate fees are a cost of sale. Moving expenses are
not relevant to the sale. Qualifying moving expenses are
deducted to gross income, but simply moving does not
qualify.

--
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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Red Scholefield wrote:

- quote -

Before we go any further on this one, is either property
your home? or other, such as rental properties?

Cheer$,
Harlan Lunsford, EA in LA

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What are the IRS regulations that cover this? How do
renovations of either property enter into the equation. Fix
up of old house (owned for 30 years) to sell and renovations
or modifications to house purchased. Also how do real-estate
fees and moving expenses enter in?

Red S.

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