I am so confused!!! What happens to us if we sell before 2 years (co-op)
bethsiar
Posted:
Member since
I am so confused!!! What happens to us if we sell before 2 years (co-op)
I have been searching and searching and all I find are all different answers on what the heck happens to us if we sell after only living there for over a year?
First I found this which says 1 year: Capital gain or loss on the sale or trade of investment property held 1 year or less is a short-term capital gain or loss. You report it in Part I of Schedule D. If the amount you report in...
Then our mortgage company says this:
Capital Gains
Profit earned from the sale of real estate. A seller may defer taxes on the capital gain of his/her primary residence by buying a higher priced residence within 2 years.
I dont get it! help! Oh and some say you get taxed 20% and then some say as of 2003 its only 10-15% urghhh!!!!!
sophie78
Posted:
Member since
Re: I am so confused!!! What happens to us if we sell before 2 years (co-op)
I think it is the second. The first does not seem to apply to you because you are going to buy something else. But honestly, I am not an expert.
Kelly9904
Posted:
Member since
Re: I am so confused!!! What happens to us if we sell before 2 years (co-op)
I *think* if you roll that profit into another primary residence right away then you wouldnt get taxed. I think that the big tax only happens if you do not buy a home with the money you make from the sale.
dkwife
Posted:
Member since
Re: I am so confused!!! What happens to us if we sell before 2 years (co-op)
Posted by Kelly9904
I *think* if you roll that profit into another primary residence right away then you wouldnt get taxed. I think that the big tax only happens if you do not buy a home with the money you make from the sale.
I believe that is true. If your profit is under a certain amount, i don't remember if it's 250k or 500k... you won't get taxed.
nov2004bride
Posted:
Member since
Re: I am so confused!!! What happens to us if we sell before 2 years (co-op)
You will be taxed even if you make a profit and go and buy something else. But the good thing is from the profit you can just save the money for the end of the year.
dkwife
Posted:
Member since
Re: I am so confused!!! What happens to us if we sell before 2 years (co-op)
Posted by nov2004bride
You will be taxed even if you make a profit and go and buy something else. But the good thing is from the profit you can just save the money for the end of the year.
Are you positive about this? My lawyer told me different...
pbandtim
Posted:
Member since
Re: I am so confused!!! What happens to us if we sell before 2 years (co-op)
Re: I am so confused!!! What happens to us if we sell before 2 years (co-op)
Posted by dkwife
Posted by nov2004bride
You will be taxed even if you make a profit and go and buy something else. But the good thing is from the profit you can just save the money for the end of the year.
Are you positive about this? My lawyer told me different...
A family accountant told us this. I hope he is wrong not for us but for a freind.
StepherG
Posted:
Member since
Re: I am so confused!!! What happens to us if we sell before 2 years (co-op)
The above poster is correct. You will be charged a capital gains tax. It USED to be that if you used the $$ to buy a new home that you wouldn't be taxed, but that is not the case any longer. I believed that it changed in the last couple years.
dkwife
Posted:
Member since
Re: I am so confused!!! What happens to us if we sell before 2 years (co-op)
So basically if you have lived there over 2 years you don't get taxed?
bethsiar
Posted:
Member since
Re: I am so confused!!! What happens to us if we sell before 2 years (co-op)
