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#16
08-15-2004, 07:10 PM
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 Re: Residential exclusion - quote - > > Pub 17 - during the 5 year period before sale of the home, > > taxpayer lived in and owned the home for at least 2 years. > > NOT necessarily the 2 years preceding the sale. Seems to me > > he has the exclusion except for recapture of depreciation. > Sorry, Nan, you must be using Jack's calculator. Count the > number of months from purschase until moving out again (it's > only 23, which is NOT two years). DEPENDS!!! The rules are just a wee bit different if the TP is/was in the military!!!=  New rule for members of the uniformed services or Foreign Service. If you have been a member of the uniformed services or Foreign Service, you now may be able to exclude from income a gain from selling your main home, even if you did not live in it the required 2 years during the 5-year period ending on the date of sale. This change applies to any sale of a main home after May 6, 1997, so you may be able to claim a refund if you paid tax on a gain from a sale after that date. "Jack" - John H. Fisher - TaxService[at]aol.com Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html Where Ignorance is bliss, 'tis folly to be wise!= << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#15
08-10-2004, 08:25 AM
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| Re: Residential exclusion naneklund[at]aol.com (Nan Eklund) wrote: - quote - > Pub 17 - during the 5 year period before sale of the home,
Sorry, Nan, you must be using Jack's calculator. Count the> taxpayer lived in and owned the home for at least 2 years. > NOT necessarily the 2 years preceding the sale. Seems to me > he has the exclusion except for recapture of depreciation. number of months from purschase until moving out again (it's only 23, which is NOT two years). << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#14
08-10-2004, 07:27 AM
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| Re: Residential exclusion - quote - > > > > Facts: Singel taxpayer owns a home for 10 years, converts
Thanks, Vida et al!!!=> > > > it into a rental on 1/1/00 and moves out the day before to a > > > > new residence. On 2/2/03, he decides to sell the house. Is > > > > the entire exclusion of $250,000 lost or is there a > > > > pro-rated amount of the exclusion? It looks like he doesn't > > > > fall into the category for any of the exceptions for > > > > proration- i.e. health, moving jobs, etc. > > > > > > > Any input will be helpful. > > > The exclusion is lost, as he does not own and livein the > > > residence for a minimum of two of the five years prior to > > > sale. Timing is everything! > > Herb, I've reread this a number of times. Seems to me he > > lived in the residence for the minimum amount of time if he > > actually sold on/about 02/03/03. > Sorry, Jack, but I think your figuring is wrong. He moved > OUT on 1/1/00 so he did not live in the house in 2000, 2001, > or 2002. He did not sell until 2/3/2003, so there is no way > he meets the 2 out of 5 year requirement. > Vida Freeman, EA "Jack" - John H. Fisher - TaxService[at]aol.com Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html Where Ignorance is bliss, 'tis folly to be wise!= << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#13
08-07-2004, 07:04 AM
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| Re: Residential exclusion - quote - > > > Facts: Singel taxpayer owns a home for 10 years, converts
Sorry, Jack, but I think your figuring is wrong. He moved> > > it into a rental on 1/1/00 and moves out the day before to a > > > new residence. On 2/2/03, he decides to sell the house. Is > > > the entire exclusion of $250,000 lost or is there a > > > pro-rated amount of the exclusion? It looks like he doesn't > > > fall into the category for any of the exceptions for > > > proration- i.e. health, moving jobs, etc. > > > > > Any input will be helpful. > > The exclusion is lost, as he does not own and livein the > > residence for a minimum of two of the five years prior to > > sale. Timing is everything! > Herb, I've reread this a number of times. Seems to me he > lived in the residence for the minimum amount of time if he > actually sold on/about 02/03/03. OUT on 1/1/00 so he did not live in the house in 2000, 2001, or 2002. He did not sell until 2/3/2003, so there is no way he meets the 2 out of 5 year requirement. Vida Freeman, EA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#12
08-05-2004, 09:07 PM
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| Re: Residential exclusion "John H. Fisher" <taxservice[at]aol.compliance> wrote: - quote - > philmarti[at]aol.com (Phil Marti) writes:
John, do the math. He was out three years, a month and a day.> > "Vernon Lee" <vlcpa001[at]postoffice.pacbell.net> writes: > > > Singel taxpayer owns a home for 10 years, converts > > > it into a rental on 1/1/00 and moves out the day before to a > > > new residence. On 2/2/03, he decides to sell the house. Is > > > the entire exclusion of $250,000 lost or is there a > > > pro-rated amount of the exclusion? It looks like he doesn't > > > fall into the category for any of the exceptions for > > > proration- i.e. health, moving jobs, etc. > > Totally lost. > Is that correct, Phil?? Unless I'm missing something, and > he sold the house on/about 2003, he would have been out of > the house for a period less than 3 years and would have > qualified. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#11
08-05-2004, 08:48 PM
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| Re: Residential exclusion "John H. Fisher" <taxservice[at]aol.compliance> wrote: - quote - > philmarti[at]aol.com (Phil Marti) writes:
John, do the math. He was out three years, a month and a day.> > "Vernon Lee" <vlcpa001[at]postoffice.pacbell.net> writes: > > > Singel taxpayer owns a home for 10 years, converts > > > it into a rental on 1/1/00 and moves out the day before to a > > > new residence. On 2/2/03, he decides to sell the house. Is > > > the entire exclusion of $250,000 lost or is there a > > > pro-rated amount of the exclusion? It looks like he doesn't > > > fall into the category for any of the exceptions for > > > proration- i.e. health, moving jobs, etc. > > Totally lost. > Is that correct, Phil?? Unless I'm missing something, and > he sold the house on/about 2003, he would have been out of > the house for a period less than 3 years and would have > qualified. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#10
08-05-2004, 08:48 PM
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| Re: Residential exclusion "John H. Fisher" <taxservice[at]aol.compliance> wrote: - quote - > smithff33[at]aol.com (Herb Smith) writes:
So that means he's a day late and several thousand dollars> > "Vernon Lee" <vlcpa001[at]postoffice.pacbell.net> wrote: > > > Facts: Singel taxpayer owns a home for 10 years, converts > > > it into a rental on 1/1/00 and moves out the day before to a > > > new residence. On 2/2/03, he decides to sell the house. Is > > > the entire exclusion of $250,000 lost or is there a > > > pro-rated amount of the exclusion? It looks like he doesn't > > > fall into the category for any of the exceptions for > > > proration- i.e. health, moving jobs, etc. > > > > > Any input will be helpful. > > The exclusion is lost, as he does not own and livein the > > residence for a minimum of two of the five years prior to > > sale. Timing is everything! > Herb, I've reread this a number of times. Seems to me he > lived in the residence for the minimum amount of time if he > actually sold on/about 02/03/03. short? -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#9
08-05-2004, 08:48 PM
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| Re: Residential exclusion "John H.Fisher" <taxservice[at]aol.compliance> wrote: - quote - > philmarti[at]aol.com (Phil Marti) writes:
John, do the math. He was out three years, a month and a day.> > "Vernon Lee" <vlcpa001[at]postoffice.pacbell.net> writes: > > > Singel taxpayer owns a home for 10 years, converts > > > it into a rental on 1/1/00 and moves out the day before to a > > > new residence. On 2/2/03, he decides to sell the house. Is > > > the entire exclusion of $250,000 lost or is there a > > > pro-rated amount of the exclusion? It looks like he doesn't > > > fall into the category for any of the exceptions for > > > proration- i.e. health, moving jobs, etc. > > Totally lost. > Is that correct, Phil?? Unless I'm missing something, and > he sold the house on/about 2003, he would have been out of > the house for a period less than 3 years and would have > qualified. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#8
08-05-2004, 08:09 PM
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| Re: Residential exclusion Pub 17 - during the 5 year period before sale of the home, taxpayer lived in and owned the home for at least 2 years. NOT necessarily the 2 years preceding the sale. Seems to me he has the exclusion except for recapture of depreciation. Nan, EA in LA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#7
08-05-2004, 08:09 PM
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| Re: Residential exclusion taxservice[at]aol.compliance (John H. Fisher) wrote: - quote - > smithff33[at]aol.com (Herb Smith) writes:
Jack, your calculator must be broken. The time between> > "Vernon Lee" <vlcpa001[at]postoffice.pacbell.net> wrote: > > > Facts: Singel taxpayer owns a home for 10 years, converts > > > it into a rental on 1/1/00 and moves out the day before to a > > > new residence. On 2/2/03, he decides to sell the house. Is > > > the entire exclusion of $250,000 lost or is there a > > > pro-rated amount of the exclusion? It looks like he doesn't > > > fall into the category for any of the exceptions for > > > proration- i.e. health, moving jobs, etc. > > > > > Any input will be helpful. > > The exclusion is lost, as he does not own and livein the > > residence for a minimum of two of the five years prior to > > sale. Timing is everything! > Herb, I've reread this a number of times. Seems to me he > lived in the residence for the minimum amount of time if he > actually sold on/about 02/03/03. 1/1/00 and 2/2/03 is 37 months, more than three years! Put another way, he lived in the house from 2/2/98 to 1/1/00, which is only 23 months - not two years in the 5 years prior to sale. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#6
08-05-2004, 07:50 PM
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| Re: Residential exclusion John H. Fisher wrote: - quote - > smithff33[at]aol.com (Herb Smith) writes:
Recheck your calculator. Based on the day he moved out> > "Vernon Lee" <vlcpa001[at]postoffice.pacbell.net> wrote: > > > Facts: Singel taxpayer owns a home for 10 years, converts > > > it into a rental on 1/1/00 and moves out the day before to a > > > new residence. On 2/2/03, he decides to sell the house. Is > > > the entire exclusion of $250,000 lost or is there a > > > pro-rated amount of the exclusion? It looks like he doesn't > > > fall into the category for any of the exceptions for > > > proration- i.e. health, moving jobs, etc. > > > > > Any input will be helpful. > > The exclusion is lost, as he does not own and livein the > > residence for a minimum of two of the five years prior to > > sale. Timing is everything! > Herb, I've reread this a number of times. Seems to me he > lived in the residence for the minimum amount of time if he > actually sold on/about 02/03/03. (12/31/99) of the home there is less than 730 days of use in the 5 year lookback period. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#5
08-05-2004, 07:50 PM
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| Re: Residential exclusion - quote - > > > Singel taxpayer owns a home for 10 years, converts
Looking at it from the "how long he's been gone" angle, he> > > it into a rental on 1/1/00 and moves out the day before to a > > > new residence. On 2/2/03, he decides to sell the house. Is > > > the entire exclusion of $250,000 lost or is there a > > > pro-rated amount of the exclusion? It looks like he doesn't > > > fall into the category for any of the exceptions for > > > proration- i.e. health, moving jobs, etc. > > Totally lost. > Is that correct, Phil?? Unless I'm missing something, and > he sold the house on/about 2003, he would have been out of > the house for a period less than 3 years and would have > qualified. was out of the house all of 2000, all of 2001, and all of 2002. That's 3 years, so a sale in February of 2003 wouldn't leave enough of the 5 year period for him to qualify. Looking backwards from the date of sale, and assuming a 2/1/2003 sale, the 5 year period runs from 2/1/1998 to 2/1/2003. During that time he lived in the house from 2/1/1998 through 12/31/1999. That ain't 2 years, so no exclusion (since no exception applies). Phil Marti Topeka, KS << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
08-04-2004, 05:16 AM
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| Re: Residential exclusion smithff33[at]aol.com (Herb Smith) writes: - quote - > "Vernon Lee" <vlcpa001[at]postoffice.pacbell.net> wrote:
Herb, I've reread this a number of times. Seems to me he> > Facts: Singel taxpayer owns a home for 10 years, converts > > it into a rental on 1/1/00 and moves out the day before to a > > new residence. On 2/2/03, he decides to sell the house. Is > > the entire exclusion of $250,000 lost or is there a > > pro-rated amount of the exclusion? It looks like he doesn't > > fall into the category for any of the exceptions for > > proration- i.e. health, moving jobs, etc. > > > Any input will be helpful. > The exclusion is lost, as he does not own and livein the > residence for a minimum of two of the five years prior to > sale. Timing is everything! lived in the residence for the minimum amount of time if he actually sold on/about 02/03/03. "Jack" - John H. Fisher - TaxService[at]aol.com Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html Where Ignorance is bliss, 'tis folly to be wise!= << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
08-04-2004, 05:16 AM
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| Re: Residential exclusion philmarti[at]aol.com (Phil Marti) writes: - quote - > "Vernon Lee" <vlcpa001[at]postoffice.pacbell.net> writes:
Is that correct, Phil?? Unless I'm missing something, and> > Singel taxpayer owns a home for 10 years, converts > > it into a rental on 1/1/00 and moves out the day before to a > > new residence. On 2/2/03, he decides to sell the house. Is > > the entire exclusion of $250,000 lost or is there a > > pro-rated amount of the exclusion? It looks like he doesn't > > fall into the category for any of the exceptions for > > proration- i.e. health, moving jobs, etc. > Totally lost. he sold the house on/about 2003, he would have been out of the house for a period less than 3 years and would have qualified. "Jack" - John H. Fisher - TaxService[at]aol.com Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html Where Ignorance is bliss, 'tis folly to be wise!= << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
07-31-2004, 06:11 AM
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| Re: Residential exclusion "Vernon Lee" <vlcpa001[at]postoffice.pacbell.net> writes: - quote - > Facts: Singel taxpayer owns a home for 10 years, converts
If the home was occupied for 2 years, out of the five years> it into a rental on 1/1/00 and moves out the day before to a > new residence. On 2/2/03, he decides to sell the house. Is > the entire exclusion of $250,000 lost or is there a > pro-rated amount of the exclusion? It looks like he doesn't > fall into the category for any of the exceptions for > proration- i.e. health, moving jobs, etc. > Any input will be helpful prior to the sale it would qualify for the exclusion. However, depreciation allowed/allowable would be taxed. Use worksheets #1 & #2 in this publication to figure taxable gain. http://www.irs.gov/publications/p523/ar02.html#d0e3263 Hope this helps 'n' Good Luck!!= "Jack" - John H. Fisher - TaxService[at]aol.com Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html Where Ignorance is bliss, 'tis folly to be wise!= << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
07-31-2004, 06:11 AM
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| Re: Residential exclusion "Vernon Lee" <vlcpa001[at]postoffice.pacbell.net> wrote: - quote - > Facts: Singel taxpayer owns a home for 10 years, converts
The exclusion is lost, as he does not own and livein the> it into a rental on 1/1/00 and moves out the day before to a > new residence. On 2/2/03, he decides to sell the house. Is > the entire exclusion of $250,000 lost or is there a > pro-rated amount of the exclusion? It looks like he doesn't > fall into the category for any of the exceptions for > proration- i.e. health, moving jobs, etc. > Any input will be helpful. residence for a minimum of two of the five years prior to sale. Timing is everything! << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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07-31-2004, 05:13 AM
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| Re: Residential exclusion "Vernon Lee" <vlcpa001[at]postoffice.pacbell.net> writes: - quote - > Singel taxpayer owns a home for 10 years, converts
Totally lost.> it into a rental on 1/1/00 and moves out the day before to a > new residence. On 2/2/03, he decides to sell the house. Is > the entire exclusion of $250,000 lost or is there a > pro-rated amount of the exclusion? It looks like he doesn't > fall into the category for any of the exceptions for > proration- i.e. health, moving jobs, etc. Phil Marti Topeka, KS << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
07-29-2004, 11:20 AM
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| Residential exclusion Facts: Singel taxpayer owns a home for 10 years, converts it into a rental on 1/1/00 and moves out the day before to a new residence. On 2/2/03, he decides to sell the house. Is the entire exclusion of $250,000 lost or is there a pro-rated amount of the exclusion? It looks like he doesn't fall into the category for any of the exceptions for proration- i.e. health, moving jobs, etc. Any input will be helpful. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| exclusion, residential |
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