Selling Home And Getting Tax Break
REM # F629
By Ilyce R. Glink
Summary: A reader wonders if they have missed an opportunity to receive tax breaks when selling their home. Ilyce explains that current IRS tax law states that as long as you have lived in your home for two of the past five years, you can keep up to $250,000 in profits tax free when you sell the house.
Q: Could you please give me some help? My husband passed away September 5,
2001. I moved out of our home of 29 years shortly thereafter.
Now, I’m thinking about selling the house. When is my time limit up for selling the house and getting the tax breaks? Was it this past September, or do I have to the end of 2005? Thank you for your help.
A: My condolences on the loss of your husband. The good news is that you haven’t lost your valuable tax breaks yet.
Current IRS tax law states that as long as you have lived in your home for
two of the past five years, you can keep up to $250,000 in profits tax free
when you sell the house.
To take advantage of this, you must sell your home and close by that date (which
will mean that you lived there two of the past five years) or move back into
the house by September 4th, 2005 and live there for a year before you sell.
For more details, talk to your tax preparer.
NOTE: This column is distributed by Real Estate Matters Syndicate, PO Box 366, Glencoe, Illinois, 60022. This column may not be resold, reprinted, resyndicated or redistributed without written permission from the publisher.
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