Owe nothing on my home. Can I keep some of the profit for myself and put the rest down on a new home without being taxed? Homestead for 3 years now.

Asked by Mitch, Amarillo, TX Mon Oct 17, 2011

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5
David Velasq…, Agent, amarillo, TX
Tue Oct 18, 2011
It's all yours baby! That's the advantage of owning a home. Great job in getting your home paid off.

David,

881-4321
0 votes
Dallas Texas, Agent, Dallas, TN
Mon Oct 17, 2011
BRAVO for owning a home best confer all your questions to a CPA for tax benefits

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Marita Topmi…, Agent, Indianapolis, IN
Mon Oct 17, 2011
Hi Mitch,

Since you lived in the home as your primary residence for at least 2 years of the
last 5, you can deduct up to $250,000 from capitol gains per owner / up to
$500,000 for 2 owners/spouses.

See details at: http://www.irs.gov/publications/p523/ar02.html#en_US_2010_pu…

Thanks for asking,

Marita Topmiller
Indianapolis area
0 votes
Guy Gimenez, Agent, Austin, TX
Mon Oct 17, 2011
If those 3 years were within the last 5 year period, then your profits will not be subject to capital gains if the profits don't exceed $250K (individual) and / $500K (couple).
Web Reference:  http://www.phgbrokers.com
0 votes
Don Groff, Agent, Austin, TX
Mon Oct 17, 2011
You most likely can. Please consult a tax professional but from what you have stated you should be able to exclude up to $250,000 from the sale of a main home ($500,000 for a married couple) as long as you have owned the home and lived it the home for a minimum of two years. Those 2 years do not need to be consecutive. You can use the 2 out of 5 year rule to exclude your profits each time you sell or exchange your main home. Typically you can do this only once every two years. Some exceptions do apply so please do consult a tax professional to get the most up to date and accurate infomration.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
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