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tax break on profit from house sale

Posted on: 07th Mar, 2007 12:17 pm
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
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.

Emshwiller
Posted on: 07th Mar, 2007 12:25 pm
Hi Kaye,
" 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:
  1. You must have approval for the homestead exemption of $25,000.

  2. Your household income cannot be more than $23,463.

  3. As of January 1st you should be owing your primary residence.

  4. While applying you would be required to provide proof that you are aged 65 or more.

  5. 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.

  6. 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
Posted on: 07th Mar, 2007 12:30 pm
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
Posted on: 07th Mar, 2007 11:39 pm
This is my primary residence since 2005. How many years are required
as primary residence to get a tax break? I am 70 yrs. old. My husband
is 72 yrs old.
Posted on: 03rd Jun, 2009 04:10 pm
As far as I know, there is no age restriction on getting a tax break on primary residence.
Posted on: 04th Jun, 2009 02:22 am
Kaye

Welcoem to forum.

If you lookign for property tax exception, then it is a good idea to check with yoru county. There are some exceptions for senior citizens

Realgeni
-Good credit is easy to achieve, as logn as you use it responsibly
Posted on: 04th Jun, 2009 09:00 pm
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