Q: My partners want to sell their house I FL and move to MI to rent. Will they get taxed if not reinvested in real estate?
A:
if they do a straight sale, then yes they will pay capital gains taxes once on the difference between their tax basis and the sale price. It is a one time tax. What they do with the money thereafter is their business.
Important, your question is really more of a question for an accountant or for a tax lawyer. I suggest that your partners consult with a tax professional to get the details of the tax ramifications that they will face when they sell the land.
A: If the home is your primary residence, you may not owe tax if your gain is less than $250,000, you lived there more than 2 years and you did not exclude capital gains from another home in the last 2 years. Since you have multiple owners, your situation may or may not fall into that category. It may serve you to discuss your particular situation in greater detail with an attorney or accountant before you sign the closing documents. Best of Luck! Jennifer
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
