Calling all tax experts

[JoanneNC]

We sold a home in 2007 and made some money off of it - but not sure if I have to claim it this year - the rules and exceptions confuse me. I think we don't because it was only like 60k and we had lived there the last 2 out of 5 years and rolled it into this house, etc
BUT - we never received any paperwork post closing.
Do they have the same 1/31 deadlines like employers?

Thanks in advance

 

[delmar411]

They don't' send you paperwork. It's just something you fill out if it applies to you. Have you run the numbers through an online tax service. You shouldn't have to pay unless you file but you will be able to see what they input for the house.

 

[JoanneNC]

I did it on both Turbo and Taxact - It asked for the house purchase price - upgrades, selling, etc and said we didn't have to include it since it was below I think 250k or maybe it was 500k married and we were in a new house that we wouldn't sell before the 2 year mark..
Guess I am filing some taxes soon..

Thanks

 

[bdcp]

If you purchased another home to replace that one as your primary residence, then you don't have any tax to pay or anything to claim per se, whether you roll the profit into it or not. The only paperwork you should have is the paperwork you received at closing. There's no 1099 or anything. There are other rules that apply if you don't roll it into your primary residence. I assume this means you don't use tax software, but are doing your own taxes? If you're using software, the questions would walk you right through it.

Edited to add, I just saw your answer about using software. You have your answer. BTW, you don't need to worry about the 250K/500K exemption since you purchased another home and the software showed you that.

 

[seashoreCM]

If you bought another house, be sure to use the calculation method that goes with sellingone house and buhing another.

The moethod where you sell a house and take a tax free profit without buying a different house can be used only once in your lifetime, so you don't want to waste that opportunity.

Disney hints: http://members.aol.com/ajaynejr/disney.htm
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[corndog]

There have not been rules about having to buy another house FOR YEARS!!!

If you only made $60k on the sale, and you lived there at least 2 out of the last 5 year, you don't even have to report anything.

corndog, JD, MBA, CPA

 

[Cheshire Figment]

I'm sorry both bdcp and SeashoreCM. The rolling of one house to into another went out over ten years ago.

If you lived in the house as your principal residence for at least 24 months out of the 60 months before the sale and you owned the house for at least 24 months out of the last 60 months and the house sold for less than $250,000 you do not need to report anything. If you are married and both spouses meet the above criteria, and the house sold for less than $500,000, you do not have to report anything.

If the selling (contract) price was over the $250,000/$500,000 then you would have to file a Schedule D with information about basis and certain expenses. If the net gain is below the 250/500 again, nothing is taxable. Only if the gain was above $250,000/$500,000 the amounts above the threshold are taxable as Long Term Capital Gains.

Mike (CPA)

 

[gardengirlco]

We sold our house a year ago and made about three times what you did off it and we don't have to pay taxes on it. They went over the info at closing with us and told us we wouldn't be taxed on the profit.

We signed a "certification for no information reporting on the sale or exchange of a principal residence" document determining that the sale didn't have to be reported to the IRS on From 1099-S, Proceeds From Real Estate Transactions.