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    rondak46's Avatar
    rondak46 Posts: 4, Reputation: 1
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    #1

    Sep 7, 2007, 09:17 AM
    Tax free Stock Sale?
    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's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    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's Avatar
    rondak46 Posts: 4, Reputation: 1
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    #3

    Sep 7, 2007, 10:33 AM
    These would be stocks acquired in an ESPP.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #4

    Sep 7, 2007, 10:56 AM
    Check the rules of the stock plan. Ask the plan admin
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #5

    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/op...nk/espptax.pdf
    Again, there's nothing in there about exceptions for 1st time home buying.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    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.
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