Home arrow Mortgage Forums arrow Budgeting and Personal Finance arrow

capital gains question

Author Message
shmootoes

Guest







Post Posted: Mon Jan 04, 2010 11:10 pm    Post subject: capital gains question
Like 0
Dislike 0

Hi , my grandmother sold some of her land to a person on monthly payments a couple of years ago, he sold the land and paid her a lump sum, 36k, she is 88, the land was attached to her
home and she has lived there since the 60's. will she pay capital gains tax? lives in tx thanks

_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant
Icon Mini Profile Niicss
Niicss




Joined: 03 Oct 2005

Posts: 4831
Location: New Jersey
508.39 Dollars($)
Post Posted: Tue Jan 05, 2010 2:12 am    Post subject:
Like 0
Dislike 0

Capital gains tax can be exempted after the sale of a property which has been owned by an individual and used as his/her sole or principal place of residence. However, you need to contact an attorney to know whether or not the land adjacent to the property would be a part of this exemption.
_________________
Good is the Enemy of Great.
Icon Mini Profile jerry
jerry
Moderator



Joined: 17 Oct 2005



Posts: 2708
Location: MICHIGAN
429.63 Dollars($)
Post Posted: Tue Jan 05, 2010 2:56 am    Post subject:
Like 0
Dislike 0

Hi shmootoes,

If your grandmother has earned a profit by selling the home, she will be entitled to pay capital gains taxes on the amount of profit. She can exclude $250k in capital gains taxes if she had occupied the home as a principal residence for 2 out of the last 5 years. The 2 years during which she occupies the property do not necessarily have to be continuous. It can be any 2 years out of the previous 5 years. You can contact a tax advisor or an account or the IRS to check if your grandmother qualifies for the capital gains tax exemption.

Thanks,

Jerry
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Refinance Quotes
Call for Rates
Speak to a lender now.
We will match calls to our toll free number with our network of lenders.
Highlights

Financial Tools

Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


Helpful References
34 Tax tips boost your savings
12 financial ways for Seniors
Budgeting Lesson 1
401k/403b Retirement Loan


Calculators     [View all]
Calculate Debt-Income Ratio
Calculate Retirement savings
Convert IRA to Roth IRA
Tax savings in 1031 Exchange


Our Community

MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards

Five simple ways to earn money with the Mortgage Community.







We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0
Page loaded in 0.060 seconds.