Is there income averaging available for a large capital gain on the sale of a second home?

[sjrcpa · Accepted solution]

No

[dascpa]

You might be a little behind on your CPE.

The general 4-year income averaging rule expired in 1986. Currently, income averaging can only be used by farmers and fishermen for their business income and, in some cases, for lump-sum retirement plan distributions.

[IRonMaN]

1986?  Time really does fly when you are having fun.

Can the gain be deferred if another home of equal or greater value is purchased?

[dascpa]

That law was repealed in 1997.  Are you SURE you should still be preparing tax returns...........

[IRonMaN]

1997?  We are getting warmer. 😁

[sjrcpa]

IRMN forgot to use the sarcasm font.

[dascpa]

• New York City places a special tax on prepared foods, so sliced bagels are taxed once as food and again as prepared food, thus creating a sliced bagel tax.
• Maine has special tax on blueberries, a valuable state resource.
• Pennsylvania has a tax on coin-operated vacuum machines at gas stations.
• States like Iowa, Pennsylvania, and New Jersey exempt pumpkins from a sales tax but only if they will be eaten and not carved.
• In 2005, Tennessee began requiring drug dealers to anonymously pay taxes on any illegal substances they sold.
• The IRS taxes stolen property. The 1040 instructions say that you should report it as stolen property. However, doing that would be self-incrimination, from which we are protected by the Constitution; therefore, one has the option of reporting it as "other income".