Home Selling in Rhode Island>Question Details

loriperron, Home Seller in 02864

I am selling my main home and have been there for 12 years, I am excluded from the capital gains but will it still count as income to me?

Asked by loriperron, 02864 Mon May 21, 2012

Help the community by answering this question:

Answers

7
I so agree...we are Realtors and should not be giving accounting advice unless you have the accounting degree and the CPA certification. Yes, we generally know the laws but always check with the expert in the field...good luck.
0 votes Thank Flag Link Mon May 28, 2012
Thanks for the clarification Chris!

To add to that answer Lori, I would also like to remind you that the rule of living in the house for two of the last five years is still a valid rule regarding capital gains tax. So if selling doesn't work out in your favor in this market, renting out the home and then turning around and selling it up to three years down the line may still be a financial benefit for you (as long as nothing has changed with the laws surrounding the rules regarding a capital gain tax exemptions).

But of course, as I must remind you, everyone's financial situation is different so consulting with a reatlor and your tax/financial advisor would be beneficial especially if you are working with a lot of equity and/or gains in your property.

Best of luck
-Michael O'Brien
Realtor, Peluso Properties
401-340-5350
michaelfobrien@gmail.com
0 votes Thank Flag Link Tue May 22, 2012
HI Lori,

See my point exactly proven here and no disrespect meant towards Michael individually, but this is why Realtor's shouldn't be answering questions like this the amount of the exemption is 250K($500K married filing jointly) plus you have other options that would defer it if necessary, but speak with a tax consultant or accountant.


Best of Luck,
Chris
0 votes Thank Flag Link Tue May 22, 2012
As long as you have lived in it for 2 of the past 5 years and the tax amount doesn't exceed $500,000 ($750,000 if you are married) it will be fine.

If you need any assistance with listing your property, I am more than happy to help you with the process.

-Michael O'Brien
Realtor, Peluso Properties
401-340-5350
michaelfobrien@gmail.com
0 votes Thank Flag Link Tue May 22, 2012
Good Afternoon Lori,

My best advice, and I am sure you will get plenty in the next 24 hours, would be to contact an accountant to tax consultant regarding this matter. After all we are mostly Realtors and Mortgage Brokers on this website and as such really shouldn't be giving tax advise.

Best of luck and I hope my answer is not taken the wrong way :)

Chris
0 votes Thank Flag Link Mon May 21, 2012
http://taxes.about.com/od/taxplanning/qt/home_sale_tax.htm

Hope this helps! Please feel free to contact me if you have any questions.

Laura Lass
Coldwell Banker
Barrington, RI

Laura.lass@nemoves.com
401-829-3633
0 votes Thank Flag Link Mon May 21, 2012
No, it was your primary residence for 2 of the last 5 years, that mean you can exclude any capitol gains up to $500,000. Speak to your tax adviser for more details.
0 votes Thank Flag Link Mon May 21, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer