"kwtx08rm" wrote:

- quote -

You'll have a short-term capital gain. Note that purchase and sale expenses
are considered when determining the amount of gain, so your taxable gain
will likely not be exactly $100,000. See IRS Publications 550 and 551.

- quote -

Short-term capital gains are taxed as ordinary income.

- quote -

No. Some people who don't own and occupy the property for 2 years qualify
for a reduced exclusion, but you must meet one of the reasons for selling
explained in IRS Publication 523.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I'm single (in 25% tax bracket) and purchased my 1st home for $350,000 in
May 2008. My intention was to have this be my main home but I have an
opportunity to sell it for approximately $450,000 before the end of this
year. If I sell it what are tax implications? Will the profit be
considered ordinary income instead of capital gain? If it's a capital
gain, can I qualify for the $250,000 capital gains exemption even though I
did not own or use the house for 2 years?


-----



##-----------------------------------------------##
Newsgroup Access Courtesy http://www.rockryno.com/
Tax and Accounting Software Forums
Web and RSS access to your favorite newsgroup -
misc.taxes.moderated - 16329 messages and counting!
##-----------------------------------------------##

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >