|
| We are selling our house with 30,000 down and the remaining 50,000 to be paid to us by the buyer over a 15 year period. How will this affect our taxes. Will we still get the tax break our lawyer mentioned? i have lived in the house for 19 yrs and it is our only residence. |
Follow-Up Postings:
|
| Breathe easy. No taxes. See IRS link below. |
Here is a link that might be useful: Seven Things you Should Know When Selling Your Home
|
- Posted by creek_side (My Page) on Sat, Oct 24, 09 at 22:24
| I'm curious, didn't your lawyer tell you? The link that Worthy posted makes no mention of installment payments. You need to run that by a tax professional, if you don't feel confident enough to dig into and interpret the tax rules for yourself. Relying on opinions from an Internet forum for tax advice is probably not the safest way to approach the subject. Tax laws and regs are so complicated that a former Inspector General of the IRS, a tax attorney by profession, under GW Bush stated that even she could not understand all the tax rules. Please don't expect the collective wisdom of this forum to do any better. |
|
- Posted by victory_tea2085 (My Page) on Sun, Oct 25, 09 at 2:16
| creek side, Just trying to get a heads up on our sale and , of course, I will check with my lawyer. Do you think my question was inappropriate? I am not relying on the collective wisdom- just asking for advice. Why are you so rude? |
|
| Ask a tax professional. Lawyers aren't always knowledgable about taxes nor are CPAs. Some are, but some aren't. |
|
| Take a look at Publication 537, Installment Sales. If you are carrying the contract or mortgage, the interest may be taxable income to you even if the payments on principal are not. As others have said, it would be wise to consult a tax professional. |
|
| "Ask a tax professional. Lawyers aren't always knowledgable about taxes nor are CPAs. " Tax attorneys are the top of the pile, followed by the CPAs. The principal will not be taxed under the exclusion rules (2 of 5 years, $250,000 per person) but any interest will be ordinary income. Holding paper on a sold house is a great way to get a good return (especially now) with the security of foreclosing if anything goes wrong and selling the house again. I hate when my borrowers refinance (or sell the place) and pay me off. |
|
- Posted by dave777_2009 (My Page) on Sun, Oct 25, 09 at 13:04
| Victory - RUDE??? Excuse me, but Creek Side was NOT rude. He/She gave you a long, and well intentioned post. Taking his/her time to politely suggest that you take the correct and wise course -and contact your attorney or a tax professional. And you call that Rude?? I have a friend who would like to own a house. Several years back when he could have bought a house because of more lax lending rules - he wouldn't listen to me... I kept telling him to go to a BANK, or a MORTGAGE BROKER; and see what they said... He kept listening to a RE Agent friend of his - who was telling him he couldn't qualify... RE Agents do NOT know who qualifies for a loan! And - they do not know tax law either. And, coming to a forum, and asking total strangers for tax advice - is dumb. Sorry. Just is. Creek Side was giving you wise advice. Advice for your own best interests. Calling him/her 'rude' was inexcusable on your part. My 2 cents. |
|
- Posted by victory_tea2085 (My Page) on Sun, Oct 25, 09 at 13:13
| Dave, you make a very good point and creek side has my deepest apology. I do understand what you are saying and I guess my interpretation was way off the mark- sorry again, creek side. |
Please Note: Only registered members are able to post messages to this forum. If you are a member, please log in. If you aren't yet a member, join now!
Return to the Buying and Selling Homes Forum
Instructions
- You must be a registered member and logged in to post messages on our forums.
- Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review the contents and make changes.
- After posting your message, you may need to refresh the forum page in order to see it.
- It is illegal to post copyrighted material without the owner's consent.
- HTML codes are allowed in the message field only.
- No advertising is allowed in any of the forums.
- If you would like to practice posting or uploading photos, please visit our Test forum.
- If you need assistance, please Contact Us and we will be happy to help.