Home Selling in Waltham>Question Details

Basil Kushnir, Both Buyer and Seller in Durham, NC

I'm moving for work and have to sell first house prior to 2 years. Can we avoid paying taxes?

Asked by Basil Kushnir, Durham, NC Wed Aug 20, 2008

Moving from Durham to Boston, so will be a big price jump. Are we exempt from capital gains tax since I'm moving for work and moving to a more expensive area?

Help the community by answering this question:

Answers

7
If you bought 2 years ago, you probably will have a loss when you sell, not a gain. Talk to your tax preparer or a financial advisor.
0 votes Thank Flag Link Thu Aug 21, 2008
Check with a CPA who specializes in this area. there are way where you may not have to pay.
0 votes Thank Flag Link Wed Aug 20, 2008
Check out the link below!
0 votes Thank Flag Link Wed Aug 20, 2008
Was it your primary residence?
0 votes Thank Flag Link Wed Aug 20, 2008
Basil
You should consult your tax professional for tax advice.
There are two points in your favor:
The tax is based on the gain in value, and it is unlikely that there is a gain.
You are moving for a new job, so be sure to discuss the deductions that are available to you when you move
Lastly, check with your new employer regarding assistance in relocation. Some employers will help pay relocation expenses, including moving costs, re-connecting utilities, accommodations while you look for a new home, etc.

These relocation benefits may far outweigh any tax consequences that result from the sale of your primary residence.
0 votes Thank Flag Link Wed Aug 20, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Dear Basil:

Be happy for the little things. Most people that have held proerty for less than two years do not have a profit. And you are moving to a great part of the Country. And you are fully employed.

No you are not exempt from Capital gains, but the exclusion is not zero if you have help property less than two years it is a proprtional exclusion. The fact that you are moving to a more expensive area is something you need to address with your Company. There are tables that show the difference in living costs, try to leverage that in a higher salary.

And don't get tax advise from realtors or real estae advise from tax advisors.

Welcome to Boston.

Best regards,

Rob
0 votes Thank Flag Link Wed Aug 20, 2008
You are not exempt but seeing you are buying a higher price it is defferred. Ask a tax advisor to be sure but you can take your lifetime exemption which wipes out a portion if not all of your capital gains. i wouldnt do it now if you are buying a higher price property. You will be able to get some tax breaks by writing off some moving expenses for work if you itemize, again see the cpa for exact amounts. In conclusion there shouldnt be taxes if you ar using your gain in Durham to buy the new house in Boston. Good luck with your move to Boston, i am neear there and love it.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Wed Aug 20, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer