Affect on Cap Gains taxes
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Affect on Cap Gains taxes (by Dee Ann [WI]) Jan 12, 2022 3:50 PM
       Affect on Cap Gains taxes (by Ray-N-Pa [PA]) Jan 12, 2022 9:34 PM
       Affect on Cap Gains taxes (by Robert J [CA]) Jan 12, 2022 10:35 PM
       Affect on Cap Gains taxes (by Marv [IL]) Jan 13, 2022 8:53 AM
       Affect on Cap Gains taxes (by Ray-N-Pa [PA]) Jan 14, 2022 9:20 PM

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Affect on Cap Gains taxes (by Dee Ann [WI]) Posted on: Jan 12, 2022 3:50 PM
Message:

Scenario: one owner lives in a property, the other owner lives in another property (due to a separation?), how would the capital gains tax for each property be affected if the separation lasts over a two year period? Taxes would potentially be filed separately over the two years, worst case scenario ownershiip of each property would be separated as well, either via quit claim deeds or whatever is amenable to both owners.

Knowledge, thoughts, ideas?

--75.11.xx.xx




Affect on Cap Gains taxes (by Ray-N-Pa [PA]) Posted on: Jan 12, 2022 9:34 PM
Message:

It would make sense to file jointly for those two years using the two addresses so that you could set yourself up for two 121 exchanges when the divorce is finalized. This does require both sides to be mature about things though --24.101.xxx.xxx




Affect on Cap Gains taxes (by Robert J [CA]) Posted on: Jan 12, 2022 10:35 PM
Message:

I believe that if each person had lived in the property 2 out of the last 5 years, and it was always an owner occupied property, they each can take the allowed deduction of $250,000. But this was from the relief act of 1997. Since then several rules have been amended and you have to meet curtain requirements. You will need to consult with a licensed accountant who specializes in real estate.

You and the other owner have to get your act aliened. If one of you did something crazy like take deductions because they rented out a room and started to depreciated and report rental income -- you'd be screwed unless you can prove otherwise... --47.155.xx.xxx




Affect on Cap Gains taxes (by Marv [IL]) Posted on: Jan 13, 2022 8:53 AM
Message:

Assuming the owner lived in the home 2 out of 5 years.

He/she would treat the property as residence (or 1/2 property if it was a duplex). He/she would get to use 250k of exclusion of gain. --67.184.xxx.xxx




Affect on Cap Gains taxes (by Ray-N-Pa [PA]) Posted on: Jan 14, 2022 9:20 PM
Message:

It is $250,000 for each single person or $500,000 for a married couple. --24.101.xxx.xxx



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