Capitol gains tax?
If my wife and I sell our house to buy an RV with the profits and become full timers, are the profits still subject to capitol gains or is the purchase of the RV considered a home?
Forum Discussion
19 Replies
- I think you need to visit a tax guy rather than asking on a RV site. :)
RoyF wrote:
I looked at instructions for schedule 1040d for year 2017 -- don't know it this will still apply during this year. For 2017, if you lived in home for two years during the five years preceeding the sale, then you can exclude $250,000 of capital gain, or $500,000 if a joint return.
This is the way it works. Buying a motorhome or a towable doesn't reduce your taxes. You will pay capitol gains on anything over $500K- There are no gains at the Capitol, only huge losses.
;) roostonu wrote:
RoyF wrote:
I looked at instructions for schedule 1040d for year 2017 -- don't know it this will still apply during this year. For 2017, if you lived in home for two years during the five years preceeding the sale, then you can exclude $250,000 of capital gain, or $500,000 if a joint return.
Thank you. We bought our hose 7 years ago and have lived in it the whole time.
We've never known anyone that lived in a hose? Couldn't resist :)
TO be recognized as a home, you need a toilet, a bed, AND some way to cook meals as well. If your RV meets those requirements, it qualifies as a home ... but also, as stated above a residence has multiple exclusions and deductions, including that exemption above.- Everyone's situation is different. Good questions for your tax professional to help you sort out for your personal situation.
RoyF wrote:
I looked at instructions for schedule 1040d for year 2017 -- don't know it this will still apply during this year. For 2017, if you lived in home for two years during the five years preceeding the sale, then you can exclude $250,000 of capital gain, or $500,000 if a joint return.
Thank you. We bought our hose 7 years ago and have lived in it the whole time.- Anything with a bed and toilet is a home.
- I looked at instructions for schedule 1040d for year 2017 -- don't know it this will still apply during this year. For 2017, if you lived in home for two years during the five years preceeding the sale, then you can exclude $250,000 of capital gain, or $500,000 if a joint return.
- I assume you only lived in the house a short time? Aren’t Home gains are exempt from any taxation as long as you lived in it I believe 2 years?
