Home Buying in Denver>Question Details

denverhouse, Home Buyer in Denver, CO

Are there tax implications to selling a house prior to owning for 2 years?

Asked by denverhouse, Denver, CO Fri Oct 5, 2012

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There could be tax ramifications depending on several factors if you sell your home in less than 2 years if you make a profit. That is a good question for you tax professional. Another resource might be a title company representative. Call Beau LaPoint at Chicago Title Cherry Creek - 303-388-5758. Depending on your circumstances, the tax implications could be minimal. All the best.

Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
1 vote Thank Flag Link Fri Oct 5, 2012
As others have suggested, this is a question for a tax expert. However, the IRS Publication 523 may help (see link below). I would call your attention especially to the section entitled "Excluding the gain," but you will want to peruse the other sections as well.

Kind regards,
Ron Rovtar
Prudential Real Estate of the Rockies
0 votes Thank Flag Link Wed Oct 24, 2012
Solid answers provided from the professionals below. I have a great referral for a credited CPA who can look at your personal situation and give you customized direction. With the inventory so low this is a phenomenal time to be considering to sell. Kim Davis, Broker/Co-Owner RE/Max of Cherry Creek Inc. 303.218.8373
0 votes Thank Flag Link Tue Oct 23, 2012
If you sell for a gain, there could be tax implications. If you sell your personal residence for a loss, the IRS says you can't deduct it. If you sell an investment property for a loss, you might be able to use the loss to offset some gains in other investments. You should ask your tax preparer how the sale will apply to your personal situation.
0 votes Thank Flag Link Fri Oct 5, 2012
If you make a profit, after all expenses, it's possible, but there are some exceptions pertaining to health or job related moves. You should talk to a CPA.

Good luck with your sale!
0 votes Thank Flag Link Fri Oct 5, 2012
Yes, if you realize any equity after the sale, there will be taxes owed. Please consult your CPA.
0 votes Thank Flag Link Fri Oct 5, 2012
The best person to answer that question is a tax accountant. If you need a recommendation I certainly could help you with that information. And of course if you need help in selling the home I would be happy to help as well.

All my best,
Bill Pearson
0 votes Thank Flag Link Fri Oct 5, 2012
Yes there are tax inplications. You must own it for at least 2 years but only there is equity realized after everything is paid.
0 votes Thank Flag Link Fri Oct 5, 2012
You could be subject to capital gains tax. You should check with an accountant. Otherwise, I could call a title representative for you and find out. Let me know if you would like some assistance.
0 votes Thank Flag Link Fri Oct 5, 2012
Could be, many factors come into play. You should check with a tax accountant.
0 votes Thank Flag Link Fri Oct 5, 2012
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