glf7cps wrote:

- quote -

Since you do not meet the qualification of OWNING and LIVING
IN the home for a minimum of two of the 5 years prior to
sale, you may have to pay tax on the entire gain. Buying a
new residence no longer has any effect on the taxation (not
since 1997) or deferral. If you meet one of few exceptions
to the 2-in-5 rule (employment change, health reasons,
unforseen circumstances) described in IRS Pub 523 you MAY
qualify for a partial exclusion amount (i.e. 18 months = 75%
of 2 years, 75% of $250,000 = $187,500).

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

"glf7cps" <gfernandez[at]firstam-dot-com.no-spam.invalid> wrote:

- quote -

With only the above facts, yes.

- quote -

Probably $13,500 (15%) Federal plus whatever for the state.

- quote -

The entire gain gets taxed regardless of what you do with
the proceeds, Mr. Van Winkle. (The law changed in 1997.)

Take a look at IRS Publication 523 to see if you meet any of
the conditions for a partial exclusion. That's your only
hope.

--
Phil Marti
Clarksburg, MD

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

"glf7cps" <gfernandez[at]firstam-dot-com.no-spam.invalid> wrote:

- quote -

It no longer matters what you do with the funds from the
sale of your residence. (It used to be that you could defer
gains indefinitely by buying another house of equal or
greater cost.)

Now you either (1) qualify for a maximum exclusion of
$250,000 ($500,000 if married filing jointly) by having had
this as your primary residence for 2 of the last 5 years
which doesn't work with the dates you have given or (2) you
may be eligible for a reduced maximum exclusion if you are
changing residences for one of the qualifying reasons.

If you don't qualify for the reduced maximum exclusion,
you'll have to pay tax on all of the capital gain . As
mentioned in another post, please make sure you get the
benefit of all of the costs associated with purchasing the
home, costs of improvements, and costs associated with
selling the home.

I believe that professional advice with save you more than
it will cost you.

Ivan

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

capital gains approixmately 90k. Do i have to pay capitals
gains? if so how much. I plan on using bout 20k for down
payment on new place..is the rest gonna get taxed? any
feedback would be greatly appreciated

thx!
George

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