David, Home Seller in San Francisco, CA

Taxes for selling home

Asked by David, San Francisco, CA Sun Jun 1, 2014

Hi,
I'm a widowed senior with a house in San Francisco. I'm currently considering selling my house and using the money to buy another house in the San Mateo or South Bay area. I heard from a friend that I do not have to pay taxes and will be able to keep my current property tax if I use all the money from selling my old new to purchase a new house. Is this true? Are there any resources read to get more info?

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Answers

3
Fed capital gain-already stated below with a $250K examption.
property tax remains same as last previous. Not sure it has to be in the same county .

Try this thread:
http://www.cga.ct.gov/2000/rpt/2000-R-0836.htm

If all fails send me a private eMail I will get you correct ans

Sam Shueh
Keller Williams Cupertino Realty
0 votes Thank Flag Link Sun Jun 15, 2014
Hi David,

It sounds like your friend was referring to what's called a 1031 exchange (based on IRS tax code 1031). This requires the buyer of the house, and the person you purchase the house from to agree to the exchange (but there's no harm to either the buyer or seller, so many people have no issue agreeing to this). It's a bit complicated, but in short, instead of just selling your property, you'd be putting the money from the sale directly into another property and deferring taxes. There are rules regarding time frame and both the current home and purchased home need to qualify. Generally speaking, the home you buy must be equal to, or more expensive than the home you sell in order to qualify.

If you'd like to discuss this option further, feel free to contact me any time and we can go over your options in more detail.

Hope this helps!
-Ryan
0 votes Thank Flag Link Fri Jun 13, 2014
I was with you until you got to the part about using all the money from the sale on the new house. That policy ended many many years ago. Today you can skip the capital gains tax if you made the house your primary residence for 2 of the last 5 years. There are other rules, but it sounds like you would qualify for that. Your tax advisor can explain to you.
0 votes Thank Flag Link Sun Jun 1, 2014
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