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Buying Replacement Home |
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I've tried every form for this question and it eludes me every place I've tried. I'd like to know the period of time that I have to purchase a home, after the sale of my home, to get credit from the IRS on the new purchase. It seems to me that there is an allowance from the tax on the sold home to be applied to the new purchase. I think I'm getting little rum dumb from pursuing this thing. I hope I've formed the question correctly and am on the right track. If not I do apologize.
Thanks, Earl |
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You're not getting anywhere because you're thinking of an old IRS tax break that no longer exists. For many years now, it hasn't mattered whether you buy a replacement home or not. The current more generous homesellers' tax break allows you to take up to $250,000 profit (twice that for a married couple) with no federal capital gains tax due at all. There is no longer any age requirement, and it's no longer once-in-a-lifetime. To qualify, you must simply have owned and occupied the property as your main residence for at least two of the five years before the sale. |
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Originally published on July 16, 2008 |
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