All Forum Posts by: Wayne Brooks

@Daniel Kotowski No…you can not use current value…you use your actual basis. It is actually your actual basis or current appraisal…whichever is Lower.

@Robert M. I think you are probably mixing apples and oranges.

To have a capital gains tax of $30k you would have had a gain/profit of over $150k.

I suspect most of the tax you owe is from depreciation recapture, which is taking back the depreciation deductions you had while owning the property. 
We have no idea what “modest profit” you gave to your parents.

@Steve K. As mentioned, it is exact dates, 730 days. However, there Are exceptions that allow a proration….moving for work, etc.  You can google them up.

@PK Adi You have a slight misunderstanding of the “2 out of 5 years” rule.

You have Already fulfilled this. You don’t have to wait until the 5 year mark.  As mentioned above, and to make it clear…..you only have to do 2 things to qualify:

1- live in it, when you buy it, for at least 2 years. You don’t have to wait for the five year mark, you can sell at any time after the 2 years

2- IF you move out, you must sell within 3 years of moving out. This is where the “2 out of 5 years” comes from. If you moved out before you sell the IRS “looks back” for 5 years from the sale date. You must haves lived in it for At Least 2 of those years which means you had to have rented it for Less than 3 of those 5 years (5 minus however long you rented it must equal 2 years or more).

@Quiche Lynn  not sure what “process” you’re trying to do or what an “affidavit of your mtg” means. Highly unlikely anyone would be able to buy that particular note, and if they could, it wouldn’t necessarily be at a discount.

The terms are Very clear…..you must move in within 60 days or so, and occupy for at least a year..

There is no lender now, so there is No lender to insure now…totally bogus. This would Not count for your lender when you refi.

@Kelly G. Yes, you absolutely have to file/pay depreciation recapture for at least the depreciation you took. And of course, you don’t qualify for the full 121 primary cap gains exclusion….from your numbers, 5/18’s (about 28%) of your gain is exempt under the 121 exclusion since you had Non Qualified use for 13 of those 18 years.

This doesn’t consider whatever time, if any, you actually lived in it between 2011 and 2018

@Cheryl Olson There is no satisfaction of mortgage Ever filed after a foreclosure. The mtg is terminated by “operation of law”….any title company searching the title finds this, it is not an issue at all. I bought half a dozen properties in Palm Beach county at foreclosure…never was a satisfaction of the foreclosing, or junior liens, mtg recorded.