Anonymous
04/14/2014 07:25
Subject: Teardown a rental, build a new one, live in as principle residence--tax consequence?
How about consulting a tax professional?! If you can afford a $1.2 m home, you can afford to pay for a good CPA.
Anonymous
04/14/2014 00:04
Subject: Teardown a rental, build a new one, live in as principle residence--tax consequence?
Anonymous wrote:You will need to pay back any gains during the rental period. You used to avoid it by moving in as a primary but that law was changed a few years a go
OP- how was the capital gain determined for the rent period? For example, if the house was purchased for $500,000 in 2008, rented for three years. In 2011, the market value of the house was $500,000. The house was teardown and rebuilt in 2011 and occupied as principle residence in January, 2012. The house was assessed by county at $1,000,000 in 2012. The current market value is around $1,200,000. If we sale now, how does IRS want us to pay capital gain? If we live in the house for 5 years are we better off in terms of tax?
Anonymous
04/13/2014 19:08
Subject: Teardown a rental, build a new one, live in as principle residence--tax consequence?
Anonymous wrote:Anonymous wrote:You will need to pay back any gains during the rental period. You used to avoid it by moving in as a primary but that law was changed a few years a go
Really? We are planning to move back into an investment property, make it our primary residence and then terdowm and rebuild our other property. You can't do that anymore?
You can but the gain of taxes will need to be paid when you sell the new home.
Anonymous
04/13/2014 18:51
Subject: Teardown a rental, build a new one, live in as principle residence--tax consequence?
Anonymous wrote:You will need to pay back any gains during the rental period. You used to avoid it by moving in as a primary but that law was changed a few years a go
Really? We are planning to move back into an investment property, make it our primary residence and then terdowm and rebuild our other property. You can't do that anymore?
Anonymous
04/13/2014 17:45
Subject: Teardown a rental, build a new one, live in as principle residence--tax consequence?
You will need to pay back any gains during the rental period. You used to avoid it by moving in as a primary but that law was changed a few years a go
Anonymous
04/13/2014 14:01
Subject: Teardown a rental, build a new one, live in as principle residence--tax consequence?
Hello,
We purchased a small house and rented it out for three years. In 2012, the house was torn down and rebuilt, we moved in. We don't really like the neighborhood and want to move out a year or two. There was no appreciation during the rental period, but we will have capital gain when we sale it. Can I use the market value of the new house as the base to calculate capital gain? How do we tell the irs there is no appreciation during the rental years? Is Turbo tax good enough figure this out? Thanks for all helpful suggestion.
We purchased a small house and rented it out for three years. In 2012, the house was torn down and rebuilt, we moved in. We don't really like the neighborhood and want to move out a year or two. There was no appreciation during the rental period, but we will have capital gain when we sale it. Can I use the market value of the new house as the base to calculate capital gain? How do we tell the irs there is no appreciation during the rental years? Is Turbo tax good enough figure this out? Thanks for all helpful suggestion.