It’s an assumption, not a historical citation.

The default 2.5% IRS income level adjustment, can you provide the historical data that you pulled that from?

thanks in advance!

I read your article on capital gains on selling a primary residence. I have some questions about the non qualified use of the principal residence?

I stayed with my Mom for 5 months (October 9, 2021 to March 12, 2022) after the death of my step-father. I stayed with her so she wouldn’t be alone after his passing. After the 5 months I went back to my primary residence. During that time she asked me if I would sell my home and come live with her permanently. I thought about it and eventually I did decide to sell my home and moved in with her permanently. Would I count those 5 months toward non qualified use?

In addition, I moved out of my residence 3.6 months prior to to the sale of my home. I moved out all personal items on September 18, 2022. The house was listed for sale on November 6, 2022 and the house closing and sale was on January 9, 2023. During that time I was still maintaining the home but was no longer living there. I did a change of address 3 weeks (24 days) before closing on the property and changed my driver’s license address approximately 2 weeks after selling the home. Would moving out of the residence prior to the sale of my home count as non qualified use?

The total time away from the home during the last 5 years was approximately 8.8 months which occurred during the last year of owning the home. I did take 1 week vacations here and there as well.

Would being away from the home that long have any impact on my exclusion deduction amount especially during the last year of owning the home? I did not buy another property prior to the sale of my home, This is the only home I’ve ever owned or sold.

I have owned the home since May 23, 2003 and sold on January 9, 2023.

Kind Regards
Cassandra

Father-in-law owns his house but moved to an assisted care facility 2 years ago. After 2024, the 2-out-of-5 rule will take effect. Are there any exceptions to avoiding capital gains tax after 2024? He won’t need the proceeds from the sale yet to pay for his assisted living. He can’t live on his own but we also want to keep the property in the family. He is starting hospice care in the facility soon. Thanks

My wife a d I bought a large lot to build our home in December, 2020. We moved into the house in January, 2022. We have now lived in the house for 18 months. We are thinking of moving out of state. Can we claim “ownership” since we bought the lot? Do we qualify for 75% of our gains ($150,000). We sold our last house in September of 2021 and will make sure escrow closes on our sake after two years. Thank you

Btw, what city/town is the mobile home park located in?

There is no similar tax break for rental property. The exclusion benefit described here only applies to primary residences. For rental property, your main tool is to defer gains with a 1031 exchange, or possible to sell on creative finance.

What city/town and state is your rental property located?

If you are joint tenants, I think you are responsible for half the gains (assuming there were only 2 people on title). Your mom’s half actually gets its basis stepped up to fair market value upon death, wiping away half the tax liability, i.e., if you sell it now, half of it would have no capital gain. If your mom had been the sole title holder, then all of it would have no capital gain, but if you are joint tenants then you technically own half.

Do you have a similar article on the tax ramifications of sale of rental property?

Thanks, Mike