Ask Experts Questions for FREE Help !
Ask
    finn007's Avatar
    finn007 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Sep 27, 2006, 07:07 AM
    Capital Gains
    My parents, residence of Florida (Father 70 retired/disability) (Mother 62 still working RN) are selling their personal residence after 12 years of ownership.
    They will become renters and live off the sale of the house along with retirement income for the rest of their lives. How do they avoid payment
    Of as much capital gains tax as possible, without re-investing in real estate?
    delite's Avatar
    delite Posts: 202, Reputation: 3
    Full Member
    		  
    #2

    Sep 27, 2006, 08:10 AM
    The first $500,000 (filing joint return) of gain is exempt from taxation. Gain in excess of that amount is taxed at a reduced capital gain rate.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Sep 27, 2006, 04:49 PM
    Delite has it covered!
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Capital Gains Tax [ 4 Answers ]

In Sept 1999 I sold a piece of property. I did a 1031 exchange for a new piece of property that cost 299000.00. My basis in that exchange was 29000.00. In April 2006 I sold that piece of property. After closing costs and realtor costs the net profit was $512,000.00. Improvement costs, repair...

Capital gains tax from buy-out [ 3 Answers ]

Hi, I would like to know how to calculate the capital gains taxes I will owe. I was recently bought out from a commercial property I was part owner of (50%). My father purchased the land in 1989 for $361,000 and in 1994 he quit claimed it to me and my two sisters, so I owned 1/3 of the property....

Capital gains and losses [ 3 Answers ]

I have had a loss on the sale of stock. I understand I can only claim 3000 per year. Does this mean I can deduct the entire 3000.00 or is it a percentage of the 3000.00? By the way this is a long term loss.

Capital Gains [ 3 Answers ]

I'm in the process of selling my house and land which currently is in three different tax bills. I went through a divorce last year and one of my questions can I use the appraisal price that was used for me to own the house and land? Two pieces were combined as it was questionable if the sewer was...

View more questions Search