philmarti[at]aol.com (Phil Marti) writes:

- quote -

I plead insufficient coffee. Any nonexcludable gain will
be taxed as ordinary income.

Phil Marti
Topeka, KS

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

raineytex[at]hotmail.com (Eddie Vedder) wrote:

- quote -

Purchasing another residence is no longer an option for
deferring the gain on a house sale. That changed in 1997,
and was replaced with the possibility of an EXCLUSION of
gain (up to $250,000 single, $500,000 if MFJ) if you OWN and
LIVE IN the house as your principal residence for 2 of the 5
years prior to sale.

Since you have only lived in the house since November, it
would not appear that you qualify for any gain exclusion,
unless you meet one of the exceptions (like the need to move
for employment reasons). If you have only owned the condo
this long, any gain will be SHORT TERM and taxed at your
ordinary tax rates, just like other income.

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

Eddie Vedder wrote:

- quote -

Use for "another purchase" is irrelevant, and has been for
some years. As it stands, your profit will be short
term* capital gains, and taxed (if you don't have capital
losses) as ordinary income for both Federal and California
purposes. Keep in mind that 3% of the gross sale price
will be withheld for California taxes, unless you are
(at the time of sale) not a California resident, and
meet other provisions.

*Assuming you BOUGHT the condo in November, which you
didn't specify.

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

- quote -

It will be ordinary income, so you will pay at whatever your
tax rate is or will be with the gain added in. BTW - it
does not matter if you buy a new property or not.

Helen, EA in PA
Member of The Tax Gang
Director, National Assoication of Enrolled Agents
Immediate Past President, PA Society of Enrolled Agents

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

raineytex[at]hotmail.com (Eddie Vedder) writes:

- quote -

Take a look at the "Partial Exclusions" section of IRS
Publication 523. Unless you meet one of those
qualifications, you'll be taxed either 5% or 15% of your
gain (Publication 550).

Phil Marti
Topeka, KS

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

How much will I get taxes on the money I make off the sell
of my home. I'm about to sell my condo in California, owner
occupied, lived there only since November. The loan I am
approved for for the new condo I'm buying is 100% financing,
I don't need the profit, $40-60k, for the new home purchase.
How much will I be taxed if I just take the money without
using it for another purchase?

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