There are 3 designated categories of homes the Anderson Realty Team Sells.
Primary Residence – Tax advice should always be given by your Accountant or CPA. The IRS rules have my variables that you may qualify to take. However the general rule is that you must live in the home for 2 out of the past 5 years. Did you know it is different for our Military? They are 2 out of the past 10 years. If you qualify for this status you are exempt to pay taxes on the gain up to $250,000 if you are Single and $500,000 if you are married.
You will pay taxes on the gain based on your tax bracket. Tax advice should always be given by your Accountant or CPA.
Taxes can be up in the 40% on the gain of the sale of these homes. Is a 1031 Exchange an option for you?
Tax deferring the tax obligation into a new property that is a move up opportunity. We have worked with 1031 Connection owned by Nace Cohen, CPA. Nace offers Cost Effective, Ease, Explanation and Execution on your 1031 Exchange!