Comments on: So goes California homes so goes Nevada homes… http://renohomevoices.com/2009/01/07/so-goes-california-homes-so-goes-nevada-homes/ Reno Homes and Tahoe Wed, 18 Aug 2010 04:21:42 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Mr Mogul http://renohomevoices.com/2009/01/07/so-goes-california-homes-so-goes-nevada-homes/comment-page-1/#comment-13616 Mr Mogul Wed, 25 Feb 2009 17:13:18 +0000 http://renohomestalk.com/2009/01/07/so-goes-california-homes-so-goes-nevada-homes/#comment-13616 Principal residence definitions have tripped people up for years. Especially when they are taking such care to get their driver's license, cars registered, and every other show of living "full time" in their second/vacation home for advantageous tax consequences. Then you have to ask, what is a vacation home? Where I spend the summer, or where I take sabbatical for over 8 months, or my hide out or my lair.....easy to be caught up in definitions..... Principal residence definitions have tripped people up for years. Especially when they are taking such care to get their driver’s license, cars registered, and every other show of living “full time” in their second/vacation home for advantageous tax consequences.

Then you have to ask, what is a vacation home? Where I spend the summer, or where I take sabbatical for over 8 months, or my hide out or my lair…..easy to be caught up in definitions…..

]]> By: LJ Kutten http://renohomevoices.com/2009/01/07/so-goes-california-homes-so-goes-nevada-homes/comment-page-1/#comment-10957 LJ Kutten Wed, 28 Jan 2009 04:53:19 +0000 http://renohomestalk.com/2009/01/07/so-goes-california-homes-so-goes-nevada-homes/#comment-10957 Ron: Pass it along. Effective 1/1/2009, a real estate investor can no longer move into a previous rental, live there two years and then get the capital gains exclusion. Lets say you own a rental house for the past three years, move in and two years later, sell. You can now only get 40% of the capital gains exclusion. This will be covered in the H&R Block presentation at the 2/2 meeting. LJK Ron: Pass it along. Effective 1/1/2009, a real estate investor can no longer move into a previous rental, live there two years and then get the capital gains exclusion.

Lets say you own a rental house for the past three years, move in and two years later, sell. You can now only get 40% of the capital gains exclusion.

This will be covered in the H&R Block presentation at the 2/2 meeting.

LJK

]]> By: LJ Kutten http://renohomevoices.com/2009/01/07/so-goes-california-homes-so-goes-nevada-homes/comment-page-1/#comment-8965 LJ Kutten Thu, 08 Jan 2009 05:08:32 +0000 http://renohomestalk.com/2009/01/07/so-goes-california-homes-so-goes-nevada-homes/#comment-8965 Ron: I was wrong about foreclosure relief last night. You cannot get relief on numerous houses in a year by making each your personal residence. The Mortgage Relief Act of 2007 uses the definition of qualified residence as presented in Section 121 of the Internal Revenue Code To wit: "(5) PRINCIPAL RESIDENCE- For purposes of this subsection, the term `principal residence' has the same meaning as when used in section 121.'. Section 121 is entitled "Exclusion of Gain from Sale of Principal Residence" Under that section a qualified residence is a residence is " such property has been owned and used by the taxpayer as the taxpayer's principal residence for periods aggregating 2 years or more. LJK Ron:

I was wrong about foreclosure relief last night. You cannot get relief on numerous houses in a year by making each your personal residence.

The Mortgage Relief Act of 2007 uses the definition of qualified residence as presented in Section 121 of the Internal Revenue Code To wit: “(5) PRINCIPAL RESIDENCE- For purposes of this subsection, the term `principal residence’ has the same meaning as when used in section 121.’.

Section 121 is entitled “Exclusion of Gain from Sale of Principal Residence”

Under that section a qualified residence is a residence is ” such property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 2 years or more.

LJK

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