NASSAUSUFFOLK

 View Only

  • 1.  $250K Capital Gain Exclusion on Sale of Principal Residence

    Silver Most Valuable Member
    Posted 03-09-2023 05:06 PM

    There are three owners on the deed. Does each owner receive up to $250K capital gain exclusion for a total of $750K capital gain exclusion?

    If yes, can anyone point me to some references that I can include in the 8275 disclosure?

    Thanx in advance for any help you can offer,

    Best, Irene



    ------------------------------
    Irene Wachsler, CPA
    Wachsler CPA LLC

    Contact:
    Irene Wachsler,
    Trusted Biz Advisor for small business & gig economy
    Cryptocurrency Tax Reporting
    Mass Film Tax Credits
    Wachsler CPA , LLC
    Cell: 781.883.3174
    Email: irene@iw-cpa.com
    ------------------------------


  • 2.  RE: $250K Capital Gain Exclusion on Sale of Principal Residence

    Bronze Most Valuable Member
    Posted 03-09-2023 07:10 PM

    Interesting question.  There is nothing stating the exemption is limited to 2 owners in Worksheet 1 of Publication 523 or in the rest of the publication.  This article addresses your question but doesn't quote any specific IRS code.

    https://www.nolo.com/legal-encyclopedia/how-does-the-capital-gains-tax-exclusion-apply-three-co-owners-home.html#:~:text=Answer%3A%20Each%20Co%2DOwner%20Can,special%20home%2Dsale%20tax%20exclusion.



    ------------------------------
    James Kalaitzis
    JAMES KALAITZIS, CPA, PC
    Commack NY
    ------------------------------

    Original Message


  • 3.  RE: $250K Capital Gain Exclusion on Sale of Principal Residence

    Posted 03-10-2023 10:34 AM

    I have to look at the IRC, but to get a $500,000 exclusion, the taxpayers had to be eligible to file a joint return.  Things changed once gay marriage was recognized so my recollection may not be applicable.



    ------------------------------
    M Daniel Martin
    M. DANIEL MARTIN, CPA EA
    Babylon NY
    M Daniel
    ------------------------------

    Original Message


  • 4.  RE: $250K Capital Gain Exclusion on Sale of Principal Residence

    Platinum Most Valuable Member
    Posted 03-11-2023 08:04 AM

    Irene, while I don't have an exact source, in the searching that I've seen, as long as the taxpayers have met the rules for ownership of primary residence, each is able to exclude up to the $250K for single.

    Steve Mankowski



    ------------------------------
    Stephen MankowskiCPA
    MANKOWSKI ASSOCIATES, CPA, LLC
    steve@mankowski.cpa
    215-682-7366
    ------------------------------

    Original Message


  • 5.  RE: $250K Capital Gain Exclusion on Sale of Principal Residence

    Platinum Most Valuable Member
    Posted 03-11-2023 09:27 AM

    I remember some time ago, Michael Rubenstein had a similar question ... and the answer then, supported your conclusion Stephen...

     

     

     

    Abby Alhante,  CPA

     

    Kurcias  & Alhante, LLC  CPAs

    525 Broadhollow Road   Suite 104

    Melville NY  11747

    516.829-5890  Ext  2   Fax 516-829-3976

    Mobile 516-381-9301

    AbbyA@KurciasAlhanteCPAs.com

    ( E mail response preferred )

     

     




    Original Message


  • 6.  RE: $250K Capital Gain Exclusion on Sale of Principal Residence

    Silver Most Valuable Member
    Posted 03-11-2023 12:53 PM

    I believe the exclusion is on a per person basis of $250,000 per person, if they meet the primary residence rules.  There is a special rule for joint ownership where a husband/wife can get $500,000 exclusion if either qualifies.  The exclusion is not on a per property basis where they split a $500,000 maximum.  Therefore, if 3 people own the property, and each qualifies, they would each get the full exclusion.



    ------------------------------
    Larry Prosky CPA
    Prosky & Rosenfeld LLP
    1025 Old Country Road
    Suite 403W
    Westbury, NY 11590
    (516) 873-9600 X1
    (516) 661-6020
    ------------------------------

    Original Message


  • 7.  RE: $250K Capital Gain Exclusion on Sale of Principal Residence

    Silver Most Valuable Member
    Posted 03-12-2023 05:20 PM

    Take a look at Treas. Reg. 1.121-2(a)(4) ex. 1  2 unmarried joint owners each get the exclusion. 



    ------------------------------
    Robert Barnett
    CPA, ESQ.
    Capell Barnett Matalon & Schoenfeld LLP
    Syosset NY
    ------------------------------

    Original Message


  • 8.  RE: $250K Capital Gain Exclusion on Sale of Principal Residence

    Platinum Most Valuable Member
    Posted 03-12-2023 05:45 PM

    Rob

     

     

    So then three unmarried people each get to exclude $250K    if they meet the use test. ?

     




    Original Message


  • 9.  RE: $250K Capital Gain Exclusion on Sale of Principal Residence

    Silver Most Valuable Member
    Posted 03-12-2023 06:11 PM

    I think the example provides support but I have not seen any cases on point.

     

    Very truly yours,

     

    ROBERT S. BARNETT

     

     

    Long Island Office:

    487 Jericho Turnpike (NEW ADDRESS!)

    Syosset, New York 11791

    516-931-8100

    Fax: 516-931-8101

     

    New York City Office:

    1385 Broadway, 12th Floor

    New York, New York 10018

    212-661-1144

    Fax: 212-643-1330

     

    www.cbmslaw.com

    _______________________
    Confidentiality Notice: The information contained in this e-mail and any attachments may be legally privileged and confidential. If you are not an intended recipient, you are hereby notified that any dissemination, distribution or copying of this e-mail is strictly prohibited. If you have received this e-mail in error, please notify the sender and permanently delete the e-mail and any attachments immediately. You should not retain, copy or use this e-mail or any attachment for any purpose, nor disclose all or any part of the contents to any other person. Thank you.

     

     




    Original Message


Discussion Disclaimer

The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.