"Ray Jenkins" <rayj.balt[at]verizonDELETHIS.net> wrote:
- quote -

Ray,

Now it's getting complicated. First of all the one-time
exclusion is long gone, kaput, dead, ancient history…

Secondly, if you are married and both living there, it's a
$500K exclusion as you describe it. Assuming we are talking
about a lot more than $500K gain, then we get the "it
depends" answer. On the stepped-up-basis at death, there
are issues to address. Are you in a community property
state and is it held as such? Are you both going to die at
the same time? If not, will the surviving spouse continue
to live in the house. You might want to sit down with a tax
professional.

BC

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- quote -

That provision is no longer in force. Instead, there is a
$250,000 (single) or $500,000 (married, joint) exclusion of
gain on your principal residence that you have lived in at
least 2 of the last 5 years. Therefore, under this
scenario, you qualify for exclusion of gain on the sale of
your home.

- quote -

No under the above explanation, if you live in the coop for
at least 2 years, you could sell it at a gain and again
exclude either $250K or $500K, depending on your situation
at time of sale.

So this looks like a truly win-win situation for you!

Kate, EA in PA

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"Ray Jenkins" <rayj.balt[at]verizonDELETHIS.net> writes:

- quote -

Read Pub 523 more carefully. It's no longer once in a
lifetime; you can do an exclusion every two years if you
feel nomadic.

Phil Marti
Topeka, KS

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"Phil Marti" <philmarti[at]aol.com> wrote:
- quote -

Thanks Phil --

I will be taking a gain of about $250,000 gain on my
principal residence of the past 23 years.

I suppose this is the logical time to invoke my
once-in-a-lifetime capital gains exclusion.

We will be buying a coop apartment for $254,000. Thus, if we
subsequently sell it at a gain, I suppose we will have to
pay CG at that time.

Or, perhaps if we hold it and pass it on to our children,
they would inherit at stepped-up basis?

Is all this correct?

For the moment, I'm thinking of any tax advantages in the
costs of selling and buying a new house.

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