All Forum Posts by: Michael Medaglia

@Bruce D. Kowal @Greg O'Brien thanks a lot for the input. I did not figure the cost to be that significant! My risk is long term cap gains on about $500k so while it could be justifiable my alternative is to wait another two months to sell my home and receive full exclusion. Given what the information you gents provided I’ll wait longer to sell my home. Thanks again!

Hi everyone,

I found PLR 200745011 which similarly represents my family's situation with some key differences. I want to request a private letter ruling from the IRS on my particular situation but need the ruling reasonably soon. If I submit for a PLR to the IRS, approximately how long will it take for them to get back to me?

@Eddie L. Yes, our address is on her driver license and many other places: tax return, bills, etc. I’m just concerned they’d scrutinize the timing because the sale will fall very closely after our 2 years of ownership and use. I have a feeling you may be right in the sense that this is our only property and they’d probably assume we would be living together as a married couple but want to be certain because the consequences are high. Thanks for your input.

@Eddie L. Yes, our address is on her driver license and many other places: tax return, bills, etc. I’m just concerned they’d scrutinize the timing because the sale will fall very closely after our 2 years of ownership and use. I have a feeling you may be right in the sense that this is our only property and they’d probably assume we would be living together as a married couple but want to be certain because the consequences are high. Thanks for your input.

My wife and I are approaching 2 years of ownership and use of our only home as our primary residence in which case we should qualify for full $500 exclusion of capital gains upon sale. The problem is she is not on the title and she is unable to get proof of change of address from USPS when we moved in 2 years ago. Will the IRS require her to furish proof of residence? What proof could she provide? 

@Eddie L. thanks a lot for the perspective. You are right in the sense that one of the major differences between our situation and the PLR is that the sale of our home is preempting the birth of our 2nd child which im not sure the IRS would look favorably upon.

My wife and I are approaching the 2 year ownership and use requirements for full exclusion of gain on the sale of our home (Aug 19, 2022). We wish to sell our home sooner (~June 2022) and seek a partial exclusion. I found private letter ruling 200745011 on the IRS website which closely describes our situation except we will be selling preemptively before the birth of our 2nd child. We have a three bedroom home, one of the rooms is being used as a home office since I work remotely. We have a 2nd child being born in July and he will take over the current office. In this case, we believe our circumstances were unforeseeable and the suitability of our home has materially changed, necessitating the sale of the home. We hope to rent back from the buyers for a couple months while our five bedroom home is being built for delivery in September/October 2022.

If we sell in June, can we have confidence to receive a partial exclusion on the sale of our home?

Reference PLR-200745011, this is basically our situation except we hope to sell before our 2nd child comes.

Hi everyone, my wife and I have been scouring the internet for answers to our predicament but cannot find an answer. Here is the background:

I am seeking advice on whether my wife and I can make a strong argument for partial exclusion of gain on the sale of our home. As of August 19 2022, we would have lived in and owned the home for 2 full years, although I am the only one on title. I understand we may qualify for a $500k exclusion if we wait until after August 19th to sell but we want to sell sooner and hence the reason why we are inquiring about partial exclusion. Here is our situation:

• We have a second child to be born July 2022
• We are purchasing a new home in October 2022 because we believe our current home is too small and not suitable for our family. Our current home is a 3 bedroom and I will be losing my home office to the new baby (I work from home).
• My wife will be on maternity leave July through September
• My wife will likely have to quit her job in September because we are moving out the area (over 50 miles from current home)
• I work from home for a company based headquartered over 50 miles away

I believe an argument we could make is that I have nowhere to reasonably establish an office in our home. 

Looking for any and all feedback! Brandon Hall? Michael Plaks? Tim Butters?