Tax due when I sell my share of the 40% of currently owned home?

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I currently have 40% of the house shared with my father (60%). My brother would like to purchase the 40% and move in. How would I deal with my taxes when I sell my 40%? Is there a tax exemption if I use this 40% money that I receive and buy another property within a certain time frame? What about the 2 out of 5 rule that I read about, would I be qualified?

So I purchased a 40 gallon breeder at a great price off of craigslist. The previous owner said that they used the tank for both fish and a turtle. How thick should the glass be on a 40 gallon breeder fish tank? And how can I tell if the seams are heavy duty? Is their anyway to reinforce the seams by adding extra silicon to them? Thanks!

5 Comments
  1. Reply
    Brother Otter
    February 7, 2011 at 12:18 am

    In the US, if this is your primary residence then you probably will not owe any taxes, and there is probably not a time limit for plowing the money into a new house.

    Research Tax Topic 701 on the IRS website.

  2. Reply
    TaxMan
    February 7, 2011 at 1:12 am

    If you live in a home for any 24 months (or more) in the 60 months preceding the sale, and you own the home for any 24 months (or more) in the 60 months preceding the sale, and you haven’t sold a home in the preceding 24 months, then you will not have to report the sale nor will have to pay any federal income taxes on the sale if your gain is less than $ 250,000 (or $ 500,000 if you are married).

    There are a million caveats like did you use the home for business and take depreciation, but I would hazard to guess that, like the other answerer said, you should be able to sell it without a worry in the world concerning federal income tax.

  3. Reply
    MissKnowItAll
    February 7, 2011 at 1:59 am

    the 2 of 5 rule says if you lived in the residence for a cumulative period of two of the previous five years as your primary home, then you have a pretty high thresh hold before capital gains taxes.

    You should talk to a real estate broker or tax attorney for the full implication of selling a your interest in a property.

    It may depend on how the house is deeded and if it is financed.

  4. Reply
    John M
    February 7, 2011 at 2:39 am

    The other answers are good ones. In general, if you only lived in the house, and it wasn’t a rental property or business location, you won’t have a tax due as long as you lived there 2 of the last 5 years.

    The laws regarding taxing gains on your residence have improved for the typical person. You are less likely to be taxed on the sale of your own home than you once were.

  5. Reply
    Tom Williams
    February 7, 2011 at 3:22 am

    The glass would usually be between 3mm-5mm thick on an aquarium. You can definitely add more silicone to the joints and this will strengthen the seals. Make sure you use an aquarium grade silicone though.

    Good luck

    Tom

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