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Old 09-22-2016, 03:50 PM
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Would I have to pay income tax if I sold this home?

Hello, we lived in a home that we purchased in 2006. Lived in it through April of 2013. We tried to sell but couldn't so we entered a 3 year rent to own agreement in December of 2013. The home should close by December 2016. I did see that If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free. If you are married and file a joint return, the tax-free amount doubles to $500,000. The law lets you "exclude" this much otherwise taxable profit from your taxable income.

However, in the past 5 years since 2011- we lived in 2011, 2012 and part of 2013. This being said, I wouldn't owe taxes on the profit correct? I'm thinking no but I just wanted an expert to tell me for sure. thanks

Edited. - Actually 2011 probably wouldn't count- I guess that would be more than 5 years ago. We lived in 2012 all year and 4 months of 2013. But, the lease to own agreement didn't get signed until December of 2013.


Last edited by mychelley201 : 09-22-2016 at 03:53 PM. Reason: years are wrong.


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Old 09-23-2016, 08:07 AM
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really asshole?



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