Profile picture for saintssb

selling house - moving job

Hi,

We only owned our house for 12 months, and are having to sell it because of my new job. We'd be moving to a new city. If the sale results in a profit, do you still owe taxes on the gains in our situation? Home is based in Los Angeles CA.
  • March 22 2010 - Burbank
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Answers (9)

You will definitely need to consult with your accountant, my opinion, would be yes you would be paying taxes for your gains!

Good Luck!
  • July 21
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Profile picture for sunnyview
You rang. Here is a copy of that no self promotion policy on Zillow. Read it, follow it and love it the way it should be loved.
  • March 24 2010
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Profile picture for SoCal Engr
@ Alma,

That was probably the most pathetic attempt to directly solicity a customer I've seen on Zillow. You work out of Chula Vista, but are trying to beg business in Burbank? You also need to check out Zillow's Good Neighbor Policy about "no spam".

Cheers
  • March 24 2010
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Hi Saintsab ,

[content removed by moderator due to self-promotion]
 
  • March 24 2010
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Profile picture for wetdawgs
If you've owned for 12 months and forced to move due to a job relocation, there are some rules about prorating the gain in the IRS tax code even though the standard is having to own and use as principal residence for 2 of the last five years.   You can find it on the irs site.

But, realistically you'll be extremely lucky to have any capital gains after 12 months ownership.    You can deduct capital improvements you may have made (landscaping?) and you can deduct the selling fees (6% commission is likely to consume any gain).

  • March 23 2010
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Profile picture for SoCal Engr

@Lynda...1031? I believe we're talking about the OP's primary residence, not an investment property. How does a 1031 exchange apply to a non-investment property?

"Both properties must be held for use in a trade or business or for investment.   Property used primarily for personal use, like a primary residence or a second home or vacation home, does not qualify for like-kind exchange treatment."

See IRS link here

  • March 23 2010
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Hello. You've got some great answers - without a doubt you must check with your CPA or tax professional on this matter. It would be great if you could sell your home at a profit in this market. Depending on your purchase price and current CMAs while not highly likely due to the short period of time that has elapsed, it may be possible.
  • March 22 2010
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Congratulations with your new transition! I'm assuming you're married and filing jointly. I believe the capital gains criteria for filing jointly is $500K profit; please consult w/ your accounting professional as you may be able to defer 'profit' on your sale via a 1031 exchange (in which you need an intermediary firm to strictly handle a part of the transaction). It's my guess that in this last year, your property value hasn't appreciated significantly enough to warrant this concern, although it's truly valid. Good luck.  
  • March 22 2010
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Probably no tax due.  The Exception is permitted if the new job site is at least 50 miles farther from the old home than the old workplace was from that home. This is the same distance rule that applies for the moving expense deduction.

See section 3 of the tax code.
Always verify tax information from any source with your tax professional.

Please give me a call or e-mail for a referral to a top buying agent in your new area or a top selling agent for your home, unless Real Estate services are included in your relo package.
 
Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® Lic #00476662
Taylor Place Real Estate, Carlsbad CA
  • March 22 2010
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