Home Sale

Forum|Forum|4 years ago
February 23, 2022
6 replies
32 views

Main home 122 Carolina

2nd home 124 Carolina

2nd home was a $40,000 next door to main home and was a fixer upper place.

124 sold for $262,900

repairs $56,00 in 2016 and repairs in 2021 $84,000

Anyway, around this capital gain? can I use main home exclusion. This was never a rental property. More just for fun to fix up

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

no main home exclusion unless they used it as a main home for 24 out of the last 60 months....sounds like a taxable sale of a second home to me.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

MGC94Author

Level 7

since they had a 1095-A instead of being taxed $943 they owe $5000. Any suggestions

sjrcpa

Level 15

Hope they saved some of the sale proceeds.

You can remind them that when they signed up on the exchange they were informed they had to notify the exchange if their income changed.

The more I know the more I don’t know.

qbteachmt

Level 15

I did some quick math.

"This was never a rental property. More just for fun to fix up"

I think they are "being paid" (come out ahead) over $65k net, for having that fun.

Don't yell at us; we're volunteers

qbteachmt

Level 15

I don't know enough details to offer this, most likely, but...

Flipping property can be Schedule C as income, not capital gains, under some circumstances. That would mean self-employed health insurance deduction comes into play.

Just thinking out loud, here...

Don't yell at us; we're volunteers

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