Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 07-18-2017, 01:35 AM
Junior Member
 
Join Date: Jul 2017
Posts: 1
Smile Capital Gains Tax Partial Exclusion

My question is in regards to the Capital Gains exceptions rule for partial exclusion.

My husband and I have owned our home in San Diego, CA for 12 months now. We are currently considering relocating to Idaho, which is where my husband is from, and selling our home. Per the IRS's exception rule you can receive partial exclusion for transferring or starting a new job at least 50 miles from the home you are selling. I have an opportunity to keep my current job but work remotely from Idaho if we do decide to move out of state. However, if we move I am unsure if the IRS will considered my job relocation an actual transfer or not.

I would like to ask your help to confirm if this would meet the exception for job-related reasons?

In addition, I'd like to know what type of evidence the IRS will require from me as evidence when asking for partial exclusion of the capital gains tax?



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 07-18-2017, 06:43 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
My husband and I have owned our home in San Diego, CA for 12 months now. We are currently considering relocating to Idaho, which is where my husband is from, and selling our home. Per the IRS's exception rule you can receive partial exclusion for transferring or starting a new job at least 50 miles from the home you are selling. I have an opportunity to keep my current job but work remotely from Idaho if we do decide to move out of state. However, if we move I am unsure if the IRS will considered my job relocation an actual transfer or not.

I would like to ask your help to confirm if this would meet the exception for job-related reasons?======>>yes it is. Since you're not a CA resident,but a Idaho resident, then as long as you're not physically present in CA - you do not owe CA taxes on compensation for your services. But that is if you're a 1099 contractor/employee.

In addition, I'd like to know what type of evidence the IRS will require from me as evidence when asking for partial exclusion of the capital gains tax?========>> Most home sellers don?t even have to report the transaction to the IRS. But if you?re one of the exceptions, knowing the rules will help you hold down your tax bill. You generally need to report the sale of your home on your tax return if you received a Form 1099-S or if you do not meet the requirements for excluding the gain on the sale of your home. To avoid getting this form (and having a copy sent to the IRS), you must give the agent some assurances at any time before February 15 of the year after the sale that all the profit on the sale is partially tax-free. Essentially, the IRS does not require the real estate agent who closes the deal to use Form 1099-S to report a home sale amounting to $250k or less ($500k or less for married couples filing jointly).



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
26 U.S. Code ? 1202 - Partial exclusion for gain from certain small business stock jcentrepreneur Capital Gains 3 10-28-2016 06:50 PM
Protect Capital Gain Exclusion when converting to rental smokyfied57 Homeowner Tax 1 04-22-2014 12:56 PM
Capital Gain exclusion - married and multiple properties prior to marriage Kahunaben Capital Gains 1 04-22-2014 03:22 AM
What is the treatment for Capital Gains and Capital Losses in a C-Corporation? katlee C-Corporation 1 02-01-2009 05:23 PM
How does one qualify for Foreign Earned Income Exclusion & Foreign Housing Exclusion? TaxGuru Miscellaneous 0 05-06-2008 04:42 PM

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
 
 
 

» Recent Tax Q&A
No Threads to Display.