Anonymous

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Rainmaker
1,534,418
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

They made it past the 24 month mark.  The first $250,000 or $500,000 (if married, filing jointly) would be exempt from taxation.  We really shouldn't answer this question but refer them to proper professional.  They may have done massive improvements,etc.  Not for us Realtors to advise on.  

Sep 07, 2018 12:16 PM
Ambassador
5,030,758
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Your CPA will know the answer

Sep 07, 2018 12:40 PM
Ambassador
3,338,449
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Consult with your CPA. 

Sep 07, 2018 04:18 PM
Ambassador
5,198,813
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Exactly what Gary Frimann said - $250K/$500K/2-year rule but, confirm it with the CPA.

Sep 07, 2018 03:12 PM
Rainmaker
1,618,881
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Same 250k/500k rule: if you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free. If you are married and file a joint return, the tax-free amount doubles to $500,000. 

And as others said: a good CPA who understands property taxes is our best friend in your situation. 

Sep 07, 2018 01:34 PM
Rainmaker
4,550,601
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

When it comes to capital gains, people need to contact their tax prepare or financial adviser for consultation for their individual situation. 

Sep 07, 2018 01:10 PM
Ambassador
2,678,589
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   Gary Frimann  has the textbook answer.  Please confirm it with a CPA or Tax Attorney.  

Sep 07, 2018 12:49 PM
Rainer
422,482
J.R. Schloemer, CRS
Kentucky Select Properties - Louisville, KY

Since you do not seem to know this answer, contact a CPA or tax accountant. You could also call the IRS and ask them their opinion on the subject matter.

Sep 07, 2018 12:57 PM
Rainmaker
5,188,610
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Anyway the CPA sees it. Make the call!

Sep 07, 2018 12:39 PM
Rainmaker
4,847,715
Richard Weeks
Dallas, TX
REALTOR®, Broker

Depends on what they paid for it and what they sold it for.

Sep 07, 2018 12:37 PM
Rainmaker
5,583,167
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

that homeowner MUST call a CPA and discuss this financial situation....

Sep 07, 2018 12:20 PM
Ambassador
6,349,430
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Seems like a better question for their accountant.

Sep 07, 2018 12:14 PM
Rainmaker
5,772,353
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Ask your tax person.

Sep 07, 2018 03:45 PM
Rainmaker
4,132,122
John Pusa
Glendale, CA

Consult with a local CPA.

Sep 07, 2018 02:53 PM
Rainmaker
7,784,719
Roy Kelley
Retired - Gaithersburg, MD

You have a good answer from Gary Frimann.

Refer your clients to the IRS website and to their CPA for professional advice. 

Sep 07, 2018 01:21 PM
Rainmaker
290,919
Allie Angeloni
Long Realty - Oro Valley, AZ

My first thought is going to a professional, as it would never be a question I would (or could) answer.  Their Accountant or CPA would be their go-to-person.

Sep 07, 2018 01:02 PM
Rainmaker
5,095,861
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Sorry, but I don't provide tax information or advice. Besides, there is not enough information here to even respond propertly.

Sep 08, 2018 03:44 AM
Rainmaker
2,371,964
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

You need to give us a complete equation Blue. We need to know the gain. It could be zero or it could be a zillion dollars.

Sep 07, 2018 06:43 PM
Rainmaker
2,219,617
Anthony Acosta - ALLATLANTAcondos.com
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Time to speak with a real estate tax advisor or CPA

Sep 07, 2018 04:57 PM
Rainmaker
1,188,211
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

It depends on how much of the gain is taxable. I think the first $250K if single or $500K if married is not taxed. BUT Call Your Tax Accountant

Sep 08, 2018 05:27 AM
Rainmaker
1,347,814
Joyce Marsh
Joyce Marsh Real Estate LLC - Daytona Beach, FL
Joyce Marsh Luxury Homes & Interior Designer

A question for your CPA 

Sep 07, 2018 09:37 PM
Rainmaker
1,087,837
Diana Zaccaro Broker Associate
Tropical Beachside - Cocoa Beach, FL
"The Accidental Blogger" Cocoa Beach, Florida

Refer them to their CPA or tax attorney. We are not experts on this.

Sep 07, 2018 05:40 PM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I do not answer questions about capital gains and tax consequences 

Sep 07, 2018 04:10 PM
Rainmaker
1,839,276
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Nothing - read up on it.

Sep 08, 2018 05:04 AM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Good answer from Gary and few others.

Sep 07, 2018 11:54 PM
Rainmaker
1,712,551
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I am sure your real estate teacher can help you on this.

Sep 08, 2018 05:45 AM
Rainmaker
1,528,510
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

Gary Frimann gave you a fine answer!

Sep 07, 2018 04:46 PM
Rainmaker
1,598,452
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

Yes

Sep 22, 2019 02:10 PM
Rainmaker
1,497,698
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Best to talk with your CPA and financial advisors.  Everyone's situation is different and I'm not an accountant and can't give tax advice.

Sep 12, 2018 09:01 PM
Rainmaker
5,847,480
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

A CPA would have this answer!

Sep 11, 2018 08:42 AM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

They need to see an accountant as everyone's tax liabilites and situations are different.

Sep 09, 2018 08:14 PM
Rainmaker
3,986,196
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Things have changed lately so I can not say for sure

Sep 09, 2018 07:53 PM
Rainmaker
897,388
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Ask your accountant or attorney. Depends on many things.

Sep 08, 2018 04:40 PM
Ambassador
3,159,434
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

there isn't enought information for an opinion.  But if asked by a client I would refer them to a CPA or tax attorney.  

Various things could have happened.  If they lived their two years, if they bought another home since and live in it, have they rented it.... SO many unanswered questions.

Sep 08, 2018 02:48 PM
Rainer
129,393
Allan Rolnick
TriState Tax Resolution LLC - Sunnyside, NY
Small Business Tax Strategist

Can exclude $250,000 ($500,00 if married filing jointly) of Capital Gain if:

if one  owned the home for 2 years during the 5 year period ending on the date of sale.

used the home as principal residence  for 2 years in the last 5 years ending on the date of sale

the individual did not exclude gain from another home during the last 2 years ending on the date of sale.

The purchase of anothe home as no effect.

Sep 08, 2018 02:35 PM
Rainer
373,320
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

There isn't enough information to answer.  Did they live in the home they purchased? Did the rent out the home they purchased?   But in the end,..... a CPA is the right person to ask.

Sep 08, 2018 12:42 PM
Rainmaker
2,165,881
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Sounds like they’ve met the two yr holding requirement .

Sep 08, 2018 08:24 AM
Rainmaker
1,292,641
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Possibly no impact at all but it depends on a number of factors best explained by a tax professional.

Sep 08, 2018 08:05 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Talk to an accountant.

Sep 08, 2018 06:31 AM