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Kaye
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0.10 Dollars($)
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 Posted: Wed Mar 07, 2007 1:17 pm Post subject: tax break on profit from house sale |
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i am planning on selling my present home and wanted to know if there is any tax break available if i make some profit from the sale… after it is sold i would purchase a new home in florida, and apply for homestead exemption after some time... i am now about 68 years old and heard that i can also apply for a additional homestead exemption as a senior citizen… from what age can someone get this additional exemption and what rules i have to meet to qualify... please provide some suggestions and help me out,thanks
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emshwiller
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0.10 Dollars($)
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| Posted: Wed Mar 07, 2007 1:25 pm Post subject: you will not owe capital gain taxes if.. |
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There is a tax break available if you sell your home and earn a profit out of it.
You can make profit of up to $250,000 (or $500,000 for a married couple filing jointly) and won't have to pay any tax. But for that one condition has to be met.
You are required to use the home as your primary residence for at least 2 years out of last 5 years before the home is sold.
It means if you are selling the home in 2007 then out of the prior 5 years you must have used the home as your primary residence for at least 2 years to avail the tax break.
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 carnahandavid
Joined: 21 Dec 2006
Posts: 239
58.41 Dollars($)
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| Posted: Wed Mar 07, 2007 1:30 pm Post subject: |
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Hi Kaye,
| Quote: | | i am now about 68 years old and heard that i can also apply for a additional homestead exemption as a senior citizen... from what age can someone get this additional exemption and what rules i have to meet to qualify... |
To qualify to additional homestead exemption in Florida, a person should be aged 65 or more. As such you can apply for the additional exemption.
But before you apply you should know the other conditions you have to meet to qualify, those are:
- You must have approval for the homestead exemption of $25,000.
- Your household income cannot be more than $23,463.
- As of January 1st you should be owing your primary residence.
- While applying you would be required to provide proof that you are aged 65 or more.
- You as well as other persons who live in the house and file IRS Form 1040 will be required to give a copy of prior year's tax return for inspection. If any wage & earning statements (i.e., W-2, 1099) are there then copy of those are also to be provided.
- You as well as other persons who live in the house but are not required to file Form 1040 need to provide copies of all 1099 forms as well as other statements of income received from pension, social security, interest income, etc. which prove all types of income received during the previous year.
I hope you meet the conditions to qualify for the additional exemption.
David |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1532
Location: MASSACHUSETTS
135.74 Dollars($)
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| Posted: Thu Mar 08, 2007 12:39 am Post subject: RE: criteria for additional homestead exemption |
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Hi Kaye,
Welcome to our forums.
The additional homestead exemption applies only to the property taxes levied by taxing authorities who have authorized the exemption. The deadline for filing the applications is March 1st, 2007.
In order to qualify for the additional exemption of $25,000, the taxpayer should be aged 65 years or older on the 1st of January for the year for which he will claim the exemptions.
The county or the municipality where the property is located, should adopt a rule that allows for the additional homestead exemption which is applied only to taxes on property.
The annual household income of the taxpayer for the previous year should not go beyond $23, 463 for the 2006 tax year.
Hope this is going to help you
God bless you.
Samantha |
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