title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Sunday, July 31, 2005
 
Home With Mildew

Q:

Subject: sale of personal residence

I bought a lot in 3/04. Sold my house in 8/04. built a new house and moved in 1/05. I now want to sell and move to a place with less mildew problems. Is there any exchange possibilities? If not when does the 2 years start/end.

Any help would be appreciated

 

A:

Since you have been using this property as a personal residence, it is not eligible for a 1031 exchange.

Your only possible way out of a taxable gain would be if you can get a doctor to verify in writing that the mildew problem is a health hazard for you.  In that case, you would be eligible for the prorated exclusion of  $342.47 per day that you lived there ($684.93 per day if married), starting from when you moved in.  Any gain above that would be subject to tax, which is why you also want to do a thorough job of accounting for your cost basis in the lot and home so that your gain is as small as possible.

You can see more on this on my main website.

Your own personal tax advisor should be able to provide more specific numbers for your unique situation.

Good luck.

Kerry Kerstetter

 

Labels:


- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 7/31/2005 02:29:00 PM Send this post:

Powered by Blogger