How long can we keep the money in the bank before having to use it without penalty

04-13-2004, 07:56 AM

"copper" <copperviewfarm[at]yahoo.com> wrote:

- quote -

> We have sold our Upper Michigan 40 acre farm for under
> 500,000 with us living in it for 10 years. We moved 1.5
> years ago to Wi for my husband for schooling due to loss of
> job. The farm intially did not even have a bathroom and we
> stripped the home to outside walls redoing all. We have kept
> our receipts.
> Do we have to claim capitol gains if we rented in Wisconsin
> from this 2002/Sept last year with moving for education and
> job relocation? Can we keep the money in the bank until we
> find a house for how long without penalty?
> If we build a home is it any different?
> Can we just buy a parcel of land and take our time building
> with renting until completed without penalty?
> We have another 40 acre parcel to be sold. Do we have to pay
> Capital gains on that if it sells in a certain period of
> time?

If this has been your principal residence for 2 of the past
5 years, you owe no capital gain tax (for any gains under
$500,000, married filing joint.).

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#-1 04-12-2004, 10:52 AM

We have sold our Upper Michigan 40 acre farm for under
500,000 with us living in it for 10 years. We moved 1.5
years ago to Wi for my husband for schooling due to loss of
job. The farm intially did not even have a bathroom and we
stripped the home to outside walls redoing all. We have kept
our receipts.

Do we have to claim capitol gains if we rented in Wisconsin
from this 2002/Sept last year with moving for education and
job relocation? Can we keep the money in the bank until we
find a house for how long without penalty?

If we build a home is it any different?
Can we just buy a parcel of land and take our time building
with renting until completed without penalty?

We have another 40 acre parcel to be sold. Do we have to pay
Capital gains on that if it sells in a certain period of
time?

Thank you all for your help.

copper

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

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