Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 05-12-2016, 06:22 PM
Junior Member
 
Join Date: May 2016
Posts: 1
Smile Moved and sold 2 homes in a year for jobs

Hi, I was hoping to get some opinions on what we might owe in capital gains taxes.

In September 2015 we moved from Indiana to Oregon for a new job and sold our house that we lived in for 3 years. We made approx. $30k on that house selling.

We closed on a house in Oregon in November 2016. I ended up taking a new job in California and just recently relocated to California and will be selling our house in Oregon now. We are again in relocation with a new company down to California and they are picking up our closing costs on both sides of the transaction once we find a house here. Even though we were only in that house 6 months it is looking like we will make $45k on that house.

We are needing all the equity we make on this house sale to be able to afford a down payment on a house in California. We have heard that if we owe something that it might be taken out immediately during escrow. What do you think we will end up owing (if we aren't able to take an exclusion) and is there any way to pay it next year come tax time vs. have it taken out at escrow? Thanks in advance.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 05-13-2016, 06:47 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,114
Moved and sold 2 homes in a year for jobs
.

In September 2015 we moved from Indiana to Oregon for a new job and sold our house that we lived in for 3 years. We made approx. $30k on that house selling.===============>>you can exclude up to $250,000 in profit from the sale of a main home (or $500,000 for a married couple) as long as you have owned the home in INDIANA and lived in the home for a minimum of 2 years. Those2 years do not need to be consecutive. In the 5 years prior to the sale of the house, you need to have lived in the house for at least 24 months in that 5-year period. In other words, the home in INDIANA must have been your principal residence.You can use this 2-out-of-5 year rule to exclude your profits each time you sell or exchange your main home. Generally, you can claim the exclusion only once every2 years.


We closed on a house in Oregon in November 2016. I ended up taking a new job in California and just recently relocated to California and will be selling our house in Oregon now.=========>>Then, in this case, since you lived in your home in OREGON less than 24 months, you may be able to exclude a portion of the gain. Exceptions are allowed as you sold your house in OREGON because the location of your job changed; since you lived in your house iin OREGON for less than 2 years, you can exclude a part of your capital gain on the sale of your house since your work location has changed. This exception would apply ONLYif you started a new job, or if you are moved to a new location with your employer.


We are again in relocation with a new company down to California and they are picking up our closing costs on both sides of the transaction once we find a house here. Even though we were only in that house 6 months it is looking like we will make $45k on that house.===>Asmentioned above; say, you can exclude a portion of your gain if you are selling your home and lived there less than 2 years as you started a new job, or if you are moved to a new location with your employer.
You may calculate your partial exclusion based on the amount of time you actually lived in your home.
Count the number of months you actually lived in your home. Then divide that number by 24. Then multiply this ratio by $250k (if unmarried) or by $500K (if married). The result is the amount of gain you can exclude from your taxable income.
For example, say, you lived in your home for 12 months, and then sold the home because your employer asked you to relocate to a different office. You are an unmarried person. You calculate your partial exclusion: 12 months )if 2 months then 2/24)divided by 24 month (for a ratio of .50) times your maximum exclusion of $250k($500K if married). The result: you can exclude up to $125k in gain. If your gain is more than $125k, you include only the amount over $125K as taxable income. If your gain is less than $125K, then your gain can be excluded from your taxable income.


We are needing all the equity we make on this house sale to be able to afford a down payment on a house in California. We have heard that if we owe something that it might be taken out immediately during escrow.===.
I THINK SO; The escrow holder has the obligation to safeguard the funds and/or documents while they are in the possession of the escrow holder, and to disburse funds and/or convey title only when all provisions of the escrow have been complied with.

What do you think we will end up owing (if we aren't able to take an exclusion) and is there any way to pay it next year come tax time vs. have it taken out at escrow? =======>>>>>>>As mentioned previously you need to to calculate yur capital gain amount by using the formula to se if you need to pay any tax on gain on sale of those homes.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
My 18 year old moved out before graduation, can I still claim her? Danni75 Filing Requirements 3 04-02-2015 04:59 PM
Family spread over two homes 8bar For 2014 0 02-01-2015 08:29 AM
trade/business of renovating and re-selling homes bmyco C-Corporation 1 03-09-2014 01:10 AM
Multi-State W2 (For 2 different jobs) TuxBobble Miscellaneous 1 02-09-2011 01:44 AM
Moved House And Sold Land libby Homeowner Tax 3 02-03-2009 05:18 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning