My Mom is thinking of Bailing out of the coastal area of Alabama. She has sold her house and is renting while she is building a smaller one (downsizing for maintnance reasons) The house is still under construction and should be finished in November. If she waits until it is finished and sells it will she have to pay capitol gains if she makes a profit? She signed the building contract in January. She figured the house was worth 40K more since then because real estate has gone nuts down there. Now with the Hurricane damage across the Mobile bay, maybe worth more since lower price homes are in shortage. I know i will probably have to do some research or pay or call an attorny but maybe some one here knows?? Moosie the slumlord?
Anyone know the rules of "primary residence"
- Thread starter schmalts
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Moosie
Grand poopa
There is something about a One time up to "X" amount on a primary residence you get to write off without Cap Gains. On rentals and other properties you file the 1031 and do a Tax Defer. A quick call to an Accountant will tell you. I don't plan on selling my primary so I'm not sure.
Moosie
Grand poopa
You don't have to live in a House to claim it primary residence. I know you're only allowed to have one Primary residence. My Dad has Primary res. in Soda Springs even though he's been in Arizona renting a Place then moved up to AK. His one and only Primary is still in Soda Springs.
It used to have to be 2 years living in it to be Primary but they killed that rule. I don't know all the "legal" aspects of it but I'd bet they can Claim primary res. as long as they don't claim it on another piece of Property.
It used to have to be 2 years living in it to be Primary but they killed that rule. I don't know all the "legal" aspects of it but I'd bet they can Claim primary res. as long as they don't claim it on another piece of Property.
JB Florida
New member
Dude!
Put up a mailbox and have her mail sent to her "new' Primary residence.
But really, you could call a local guru @ Grant Sanders & Taylor 251-968-2727
When it involves substantial tax amounts, I call and get professional advice.
Put up a mailbox and have her mail sent to her "new' Primary residence.
But really, you could call a local guru @ Grant Sanders & Taylor 251-968-2727
When it involves substantial tax amounts, I call and get professional advice.
