Selling a primary residence in WA state[tax question]

#3 04-05-2006, 08:31 AM

joe.bao[at]gmail.com wrote:

- quote -

> Hey folks, Would really appreciate getting some
> guidance/support on the below.
> I bought a condo in July of 2004 for 151K. I just put in on
> the market and in the process of selling for 210K. This was
> a primary residence and hasn't been rented out in my time of
> ownership. I bought another house in the area for 330K.
> Because I haven't lived in the house for more than 2 years,
> do I have to pay capital gains tax on my appreciation?

Yes

- quote -

> If
> so, shouldn't I just wait the additional 3 months?

Well, sell it now and pay cap gains tax. Sell it in 3
months and pay no cap gains tax. Assuming the housing
market is not going to take a dump, the decision is simple.
But who knows.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#2 04-05-2006, 08:12 AM

<joe.bao[at]gmail.com> wrote:

- quote -

> Hey folks, Would really appreciate getting some
> guidance/support on the below.
> I bought a condo in July of 2004 for 151K. I just put in on
> the market and in the process of selling for 210K. This was
> a primary residence and hasn't been rented out in my time of
> ownership. I bought another house in the area for 330K.
> Because I haven't lived in the house for more than 2 years,
> do I have to pay capital gains tax on my appreciation?

Yes.

- quote -

> If so, shouldn't I just wait the additional 3 months?

You have to live there, not just wait. That will save you
capital gains taxes on the sale, and give you time to
remodel the house.

Seth

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#1 04-05-2006, 08:12 AM

joe.bao[at]gmail.com wrote:

- quote -

> Hey folks, Would really appreciate getting some
> guidance/support on the below.
> I bought a condo in July of 2004 for 151K. I just put in on
> the market and in the process of selling for 210K. This was
> a primary residence and hasn't been rented out in my time of
> ownership. I bought another house in the area for 330K.
> Because I haven't lived in the house for more than 2 years,
> do I have to pay capital gains tax on my appreciation? If
> so, shouldn't I just wait the additional 3 months?

Yes and I guess that depends on the buyer.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

04-05-2006, 07:53 AM

You can get a partial exclusion if you meet one of the
hardship criteria, e.g. divorce or moving out of town for a
new job. In your case, you will have to pay capital gains
tax on the entire gain unless you own and live in the home
for a minimum of 2 years out of the last 5 years. So I would
put off the sale for another 3 months if I were you.

Dennis

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#-1 04-04-2006, 08:00 AM

Hey folks, Would really appreciate getting some
guidance/support on the below.

I bought a condo in July of 2004 for 151K. I just put in on
the market and in the process of selling for 210K. This was
a primary residence and hasn't been rented out in my time of
ownership. I bought another house in the area for 330K.

Because I haven't lived in the house for more than 2 years,
do I have to pay capital gains tax on my appreciation? If
so, shouldn't I just wait the additional 3 months?

Thoughts/tips?

Thanks,

J

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

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