Guest mark1967 Posted June 10, 2003 Posted June 10, 2003 I've made quite a mess. Took 14,000 out of my Roth IRA for a down payment on a new home, that went fine. Now I can't rent out my townhome, and I am selling it. How can I protect my capitol gains from the sale of the townhome, and avoid the 28% tax? Where can I put the money? Married with two month old twins, living in Florida.
GBurns Posted June 10, 2003 Posted June 10, 2003 You are selling your old primary residence which was replaced by a new primary residence, Why would capital gains be an issue? George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
mbozek Posted June 10, 2003 Posted June 10, 2003 How long did you use the house as your prmary residence? There is no cap gains tax on first $250,000 of gain (500K if married during this period) if u used the home as your primary residence for two of the five years prior to date of sale. IRC 121(b). (Note-the tax deferral for the purchase of a replacement home was abolished in 1997). Otherwise you are subject to st/lt cap gains tax. There is an IRS pub. on selling your home. You should consult a tax advisor to see if you can net investment losses against the cap gains on the house. mjb
Guest mark1967 Posted June 10, 2003 Posted June 10, 2003 If all this is true, then it is fantastic news. My realtor must be misinformed. I lived there 5 years. thanks for all your help. mark
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