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rondak46
Sep 7, 2007, 09:17 AM
I was told that you can do a one-time tax free stock sale for the purchase of your first primary residence. Is there any truth to this?
ScottGem
Sep 7, 2007, 09:40 AM
Sale of what stock from where? If you are selling off stock or mutual funds that you have purchased independently then no.
rondak46
Sep 7, 2007, 10:33 AM
These would be stocks aquired in an ESPP.
ScottGem
Sep 7, 2007, 10:56 AM
Check the rules of the stock plan. Ask the plan admin
ebaines
Sep 7, 2007, 11:36 AM
I've not heard of any "tax free stock sale" from an ESPP that you could use for a 1st time home purchase. The rules for how the sale of your ESPP shares are handled at tax time are pretty complicated - here's a link to a document from E-Trade that provides an overview:
https://content.etrade.com/etrade/optionslink/espptax.pdf
Again, there's nothing in there about exceptions for 1st time home buying.
AtlantaTaxExpert
Sep 7, 2007, 07:59 PM
No, the stock sale will NOT be tax-free.

You can withdraw money (up to $10,000) from your IRA and avoid the 10% Early Withdrawal Penalty, but you STILL have to pay taxes on the money.