Bebe, Home Seller in Pleasant Hill, CA

We live in the bay area and need to know more information about capital gain and taxes?

Asked by Bebe, Pleasant Hill, CA Tue Jun 9, 2009

My husband owns a house with his brothers that their parents just vacated due to needing elderly care. They acquired the property in 1997 by an Aunt. Now they would like to sell it. After selling it and splitting it among the brothers, what type of taxes, capital gain ect... do we have to look out for? We have never done this before. Also if we reinvest it to avoid paying more taxes, how long do we have to do that?

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Bebe, glad we could help.

This is a good site to visit for selecting a CPA:
http://www.dca.ca.gov/cba/consumers/slectcpa.shtml

And, you can use the following link to find a licensed CPA near you:
http://www2.dca.ca.gov/pls/wllpub/wllqryna$lcev2.startup?p_q…

Best, Steve
0 votes Thank Flag Link Thu Jun 11, 2009
Thank you Steve and Suzanne for responding and for your e-mail information and website to research. This at least will get me started on what questions to ask.
0 votes Thank Flag Link Wed Jun 10, 2009
Hi Bebe,

Suzanne is absolutely right - you need to identify a CPA/Tax Specialist to navigate your best financial path. Your situation is not simple, nor completely clear as to who owns the home now or what the status of the property is (primary residence or investment property). There are many "twists & turns" concerning Tax Code Section 121. As a Q&A sample see: http://www.brittoncpa.com/house.htm

Be aware that new Capital Gains Exclusion rules became effective January 1, 2009. The new rules only apply to homeowners moving into property formerly designated as a second home or investment property.

If you desire, IRS Publication 523 (2008), "Selling Your Home" covers the Cap Gains Exclusion in more detail (has not been updated for 2009 yet:
http://www.irs.gov/publications/p523/index.html

Best, Steve
0 votes Thank Flag Link Wed Jun 10, 2009
Hi Bebe,
I would recommend that you speak with a tax specialist. I have one that we personally use along with many of my clients. Please email me offline if you would like his name.
Regards,
Suzanne Looker, slooker@rockcliff.com
0 votes Thank Flag Link Tue Jun 9, 2009
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