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Follow on Google News | IRS Wage Levy – Proceeds from a Sale of Your Primary Residence Can Lead to Uncontrollable Tax DebtBy: DWK Tax Group Admin Call 1 - 8 6 6 - 2 2 6 - 6 1 0 2, 9:00AM EST till 8:00 PM EST or visit http://dwktaxgroup.com/ DWK Tax offers tangible & sustainable solutions for the General Public with unrivaled service standards exceeded by no competitor. Do not allow your case file to drag on for months unnecessarily, avoid getting lost in the IRS tax representation shuffle or most importantly get a phone call or question answered without requiring an act of congress (We know how they work). DWK is always held ourselves accountable to all of our clients past, present and future. Today's lesson understands the ramifications of proceeds from a primary residence transaction; A Single or Head of Household Homeowner/Taxpayer can exclude up to a $250,000 gain on the sale of a primary residence; 1) Taxpayer owned home for 2 out of last 5 years [Ownership test] 2) Taxpayer lived in home as his primary residence for 2 of the last 5 years [Use test] 3) The Taxpayer did not exclude gain from a sale of another home during a 2 year period ending on the date of the sale Married Filing Jointly Taxpayer can exclude up to $500,000 of the gain if all of the following is true; 1) Married and filing a joint return 2) Either spouse meets the ownership test 3) Both spouses meet the Use test 4) Both Husband and Wife did not exclude gain from a sale of another home during a 2 year period ending on the date of the sale A "Reduced Exclusion" may still be an option but the maximum amount of the gain that can be excluded will be lowered, if the Taxpayer did not meet ownership and use test for a residence sold due to; 1) A change in location or place of current employment 2) Health issues 3) Unforeseen circumstances The exclusion is prorated by the number of days the IRS taxpayer meets the ownership and use test divided by 730 days (two years). If the IRS taxpayer does not meet the above requirements, none of the gain can be excluded. If the requirements are met, a IRS taxpayer can take the exclusion every two years. To figure the gain or loss on the sale of a primary residence / main home, take the selling price subtract the selling expenses, then subtract the adjusted basis of the property. The adjusted basis of a home is the purchase price plus any additions or improvements. In closing, IRS tax code interpretation is very subjective, Joe Schmo off the street has rights to protect, don't get run over by the involved IRS taxing collecting authority. Hire the Protector, DWK Tax Group and get your established rights exercised. Thank you for your time in advance... DWK Tax Group 1-866-226-6102 information@ www.dwktaxgroup.com End
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