Real Estate Days on Market?

[Jstpssng]

Only problem i see, if he doesn't reinvest profit within 6 months….i believe thate the term… hes going to be hit with some huge taxes.

That depends on what he makes on it. As long as it was his primary residence for at least 2 years, he can make up to $250,000 without getting taxed. It's rather late in the day, but I believe that if he bought for<$352,000 and makes 71% he will be under that threshhold. Presuming that 71% is after the realtor and attorneys take their portion.

 

[Kernopelli]

Only problem i see, if he doesn't reinvest profit within 6 months….i believe thate the term… hes going to be hit with some huge taxes.

This was his primary residence and fortunately his situation falls within the guidelines on capital gains on home sales.

IRS code in summary says :If you’ve owned your home for at least two years and meet the primary residence rules, you may owe tax on the profit if it exceeds IRS thresholds. Single people can exclude up to $250,000 of the gain, and married people filing a joint return can exclude up to $500,000 of the gain.

 

[Jstpssng]

married people filing a joint return can exclude up to $500,000 of the gain.

I didn't realize this part. I know people who move every two years, to take advantage of the tax benefit. Moving costs, et.al. are all deductible against that 250/500K threshhold.

 

[Doorman63]

My oldest son put his house on the market 2 weeks ago ( Southern Illinois). He received a full price offer within 24 hrs. His selling price was a 71% increase over his purchase price 3 1/2 yrs. ago ( no improvements were made during that time). I am encouraging him to rent for a year, I strongly suspect our local market will pace a downturn to follow the projected economic slowdown.

Where abouts?
We are just outside Salem.

 

[JasperFrank]

We had measure 50 in Oregon 1997, or so, that limited Prop tax increases to five percent per year.
Ya, gotta love a State that can make its own rules by petitioner, and set up to be voted on, that then becomes a law. For most other states, this isn't how it works.

 

[plowhog]

I know people who move every two years, to take advantage of the tax benefit. Moving costs, et.al. are all deductible against that 250/500K threshhold.

I'm no tax expert, but I am surprised that moving costs are allowable as a charge against the basis in the property.

Are those expenses applicable to the property sold, or the new property purchased?

 

[Kernopelli]

Where abouts?
We are just outside Salem.

Murphysboro

 

[SgtSluggo]

I'm no tax expert, but I am surprised that moving costs are allowable as a charge against the basis in the property.

Are those expenses applicable to the property sold, or the new property purchased?

I don't think they are deductible anymore. You used to be able to deduct moving expenses on your federal income return if you move more than 50 miles closer to your job. That deduction has been gone for a few years though.

 

[Jstpssng]

I'm no tax expert, but I am surprised that moving costs are allowable as a charge against the basis in the property.

Are those expenses applicable to the property sold, or the new property purchased?

I'm no tax expert either. I did open the can of worms though so felt obligated to do some research. I believe that you are right, and moving expenses probably are not deductible.

As always, my advice is free and worth what you pay for it. Contact your tax professional to avoid unnecessary penalties and interest.

 

[riptides]

This was his primary residence and fortunately his situation falls within the guidelines on capital gains on home sales.

IRS code in summary says :If you’ve owned your home for at least two years and meet the primary residence rules, you may owe tax on the profit if it exceeds IRS thresholds. Single people can exclude up to $250,000 of the gain, and married people filing a joint return can exclude up to $500,000 of the gain.

You can factor home improvements/remodeling into the equation too.