Go to Jeff Salisbury LWGate Home Page.From: "J. Phillip Jennings" <phillip.jennings@uc.edu>
Subject: cost basis and capital gains on homes
Date: Tue, 19 Jan 1999 23:52:08 -0500
Next Article (by Author): Re: IRA Rich Carreiro
Previous Article (by Author): Re: Cancelled checks, proof of payment David Martin
Articles sorted by: [Date]
[Author]
[Subject]
Help, I cannot figure out how to calculate the gain on a series of home sales. Here is my situation: 1991 - bought home (home #1) for $126,000 1995 - sold for $202,500 and bought a new home (#2) for $312,500. I calculated the gain at the time to be approx. $54,000 after adding improvements to the original basis and subtracting closing fees, commission, and fixing-up expenses from the sales price of home #1. This gain was reported on my tax return, but deferred since I purchased a home of greater value. I am OK up to this point. Now... 1998 - sold home #2 for $337,000. I calculate the adjusted sales price (-commission, etc.) to be $314,000. My basis in this house was $316,000 (one major improvement in the 3 years I lived there). I then bought a new home for $249,900 (moved to a different state). I calculate a $2000 loss on home #2. My problem is that i cannot figure out how to report the gain now that I have home #3. Since I lived in home #2 for at least 2 years, I am eligible to avoid capital gains tax on the sale of the previous two homes, right? My basis in home #3 is $251,000, but we just finished the basement which would boost the basis to $273,000. Does any have any insight on how to keep track of my basis over the sale of several homes? I know I will not owe any taxes, but I need to keep a good record and report the gain now since a bought a home of lesser value this time. What would my capital gain be now and how does the gain from home #1 paly into this. I looked in several "money" books and only found vbague directions. TIA for your help. Phillip Jennings Cincinnati, OH - -
Next Article (by Author): Re: IRA Rich Carreiro
Previous Article (by Author): Re: Cancelled checks, proof of payment David Martin
Articles sorted by: [Date]
[Author]
[Subject]