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GaknTak
He has my heart
Member since 12/07 1379 total posts
Name:
Tracy
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Capital Gains Tax
DH had bought a house in Riverhead back in 99, sold it in 04. Bought the house we live in now in 04 and we presently live here. In 2 years we are moving back to LI. We have an idea to rent somewhere out on Long island before we purchase a new house. Meaning, sell this house, pay off the mortgage, and put the balance in an account until we purchase our next home. We are hoping to maybe find a short sale, etc. But are we going to get hit with a capital gains tax since it would be the 3rd house he would be purchasing? And do you think we would have a better shot at purchasing a forclosure/short sale if we rent somewhere?
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Posted 1/10/11 8:54 PM  |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Capital Gains Tax
I am not an account- just a realtor :)
but I am 99% sure that you have a year to purchse another property
this issues came up when he sold his NY house but wanted to wait a year to buy something FL to make sure he liked the area
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| Posted 1/10/11 8:57 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Capital Gains Tax
I am confused by your last question...
if you have questions about buying a short sale or a foreclosure I would be happy to help- I specialize in them
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| Posted 1/10/11 8:59 PM |
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GaknTak
He has my heart
Member since 12/07 1379 total posts
Name:
Tracy
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Re: Capital Gains Tax
Posted by Beth
I am confused by your last question...
if you have questions about buying a short sale or a foreclosure I would be happy to help- I specialize in them
HI Beth! THank you so much for answering my questions. We are thinking of renting somewhere after we sell this house. In hopes to find a short sale/foreclosure house to buy. Do you think we would have a better shot at getting a deal since we wont have a house to sell at that point? We would have our cash sitting in an account ready to put down on something. We live in NJ right now.
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| Posted 1/10/11 9:21 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Capital Gains Tax
Capital Gains tax is determined when you sell, not when you buy.
As long as you lived in the house for three of the prior five years as your PRIMARY residence, you don't pay gains under 500k (joint).
So if you sell your house now, you wouldn't pay gains under 500k. You can immediately buy another house and as long as you live there for the next three of five years, you shouldn't pay gains tax on that either.
That is my understanding of the law. I am not a CPA.
Message edited 1/10/2011 9:22:04 PM.
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| Posted 1/10/11 9:21 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Capital Gains Tax
Posted by GaknTak
Posted by Beth
I am confused by your last question...
if you have questions about buying a short sale or a foreclosure I would be happy to help- I specialize in them
HI Beth! THank you so much for answering my questions. We are thinking of renting somewhere after we sell this house. In hopes to find a short sale/foreclosure house to buy. Do you think we would have a better shot at getting a deal since we wont have a house to sell at that point? We would have our cash sitting in an account ready to put down on something. We live in NJ right now.
you wouldn't be able to buy either contigent on the sale of another home if that is what you mean
so it's not that you would get a better deal...but it's the only way you would be able to put an offer in
no bank is accepting an offer contigent on the sale of another home- but that will help with the purchase of any home in this market- so it's a good place to be in
do you have a listing book account? I can set up one for you- just send me an FM with a little more of what you are looking for and your email
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| Posted 1/10/11 9:27 PM |
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