tag:blogger.com,1999:blog-6318055043707993918.post4092326430208642370..comments2024-02-20T02:12:18.090-05:00Comments on THE WANDERING TAX PRO: THE HOUSING BILL AND THE 1040Robert D Flachhttp://www.blogger.com/profile/06034127763662917220noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6318055043707993918.post-45616524310105320942008-09-06T07:50:00.000-04:002008-09-06T07:50:00.000-04:00Anonymous -I suggest you read my post on Sale of P...Anonymous -<BR/><BR/>I suggest you read my post on Sale of Personal Residence at http://wanderingtaxpro.blogspot.com/2008/07/1040-fyi-sale-of-personal-residence.html.<BR/><BR/>TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-55631213461439791692008-09-05T20:42:00.000-04:002008-09-05T20:42:00.000-04:00Thank you (TWTP September 5 2:01 PM) for answering...Thank you (TWTP September 5 2:01 PM) for answering my question about moving back to my residence before Jan.1,2009 to avoid application of the new tax rule(HR3221).<BR/>I am a single tax payer and the house is now worth $250,000(approx.) and was purchased for $50,000. I don't expect it to appreciate much if any in the next two years. So if I sell after 2 years with a profit at or under $250,000 it will be free of tax? Sorry if this is redundant to you, but I want to make sure I understand the law.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-15440560855198130812008-09-05T15:01:00.000-04:002008-09-05T15:01:00.000-04:00Anonymous-I assume that the 2 years you lived in t...Anonymous-<BR/><BR/>I assume that the 2 years you lived in the home were over 24 years ago, and it has been rented for the past 24 years. So you have not used it as your personal residence for the past 24 years – let alone 2 out of the past 5 years. <BR/><BR/>In order to be able to claim the $250,000 or $500,000 exemption on the gain from its sale you must live in it as your personal residence for 24 months during the 60 month period prior to the date of sale. As it now stands you would not qualify for any Section 121 exclusion.<BR/><BR/>In you want to qualify for Section 121 gain exclusion you would have to move back into this home and live there for 2 years before you sell it – regardless of the new Housing Act. To avoid any reduction of gain under the new Housing Act you would have to move back before January 1, 2009. <BR/><BR/>Since the definition of a period of “nonqualified use” does not include any period before January 1, 2009, you can avoid application of the new rule if you move into the residence and make it your principal residence before January 1, 2009.<BR/><BR/>TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-28064005041100944312008-09-04T22:37:00.000-04:002008-09-04T22:37:00.000-04:00As of November 2008, I will have owned my home for...As of November 2008, I will have owned my home for 27 years. I lived in it 2 years and rented it out about 24 years. I won no other home. Do I need to move back to my home now(before Jan.1,2009) to avoid the consequences of this Tax Act, or will I still be governed by it?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-16607211970968917472008-07-31T15:44:00.000-04:002008-07-31T15:44:00.000-04:00Anon-I was just reading the National Association o...Anon-<BR/><BR/>I was just reading the National Association of Tax Professional's analysis of the housing tax bill and came across the following statement -<BR/><BR/>"If the individual is married, neither the individual nor his spouse may have had a present ownership interest in a principal residence during that three-year period."<BR/><BR/>So if you have never owned a principal residence but you wife has during the three-year "look-back" period than her ownership would disqualify you for the credit. It does not matter that she purchased or owned the principal residence before you were married.<BR/><BR/>TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-1672105155563982112008-07-31T13:42:00.000-04:002008-07-31T13:42:00.000-04:00Anon-A good question.This law is new and will take...Anon-<BR/><BR/>A good question.<BR/><BR/>This law is new and will take time to "digest".<BR/><BR/>If I come across the answer to your question in my research of the bill I will post it here.<BR/><BR/>Anyone else out there want to take this one?<BR/><BR/>TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-56587712378653886582008-07-31T12:33:00.000-04:002008-07-31T12:33:00.000-04:00Can I claim the tax credit if I'm married and my w...Can I claim the tax credit if I'm married and my wife owns home that she purchased before we were married? I've never owned a home.Anonymousnoreply@blogger.com