Tax Ramifications

If it's your principal residence, same as a condo or house. If you're married and you have been living there 2 out of the last 5 years, 500k tax-free. If not, capital gains tax - long-term gains if > 1 year.

Hi, I am not sure how many the miles away the relocation has to be to be validly deemed too far to commute to work. However once it is deemed a relocation was the cause of the sale I believe the tax savings are pro rated eg if you have been there 1 year you get 50% of the above stated tax deduction.

Anyway, you're not likely to have a profit in these particular two years, and if you are lucky/smart enough to profit, the tax rate that applies is only 15%.

I believe you cannot take a capital/ordinary loss deduction, unfortunately.

But please keep in mind that I'm not a professional and I don't know what I'm talking about.

Thx for the insight. Alan, dont worry, I wont hold you liable as an accountant for misinformed tax advice! I did do some research and there are some differences if its 1 or 2 years. It used to be 15% tax rate, but it looks like it jumps back up to 20% next year and between my 10% flip tax, my profit is shrinking as we speak. There is a health exception which could possibly come in to play here. I wonder how strict the goverment woul be on something like that, ie wife has mental health problem because she hates the neighborhood with supporting letters from treating psych?

dont forget the transfer tax paid by seller