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What is the best way to deal with back tax debt?

I lost my job. Had to sell the house to pay debt. Is their any way to be exempt from the capital gains tax?

  • I lost my job and had to sell my house to pay off debt after only a 1.5 years of living there. I still have not found employment and want to know if there is any way to avoid the capital gains tax as I have no money to pay it.

  • Answer:

    Here is the specific link you will need: http://www.irs.gov/publications/p523/ar02.html#d0e1931 You can exclude up to $250,000 of the gain on the sale of your main home if all of the following are true. You meet the ownership test. You meet the use test. During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home.

stone193... at Yahoo! Answers Visit the source

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Refer to IRS.GOV for information regarding capital gains taxes. I am not a tax professional, but I had a similar question awhile back and called IRS. They said that if we moved because of a job, it would be waived. Also, if you owned it for at least a year, the amount you have to pay is less than if you owned it for two years. I believe after two years, you don't have to pay. Good Luck. Call IRS if you have to. They were helpful, but not necessarily wanting me to avoid paying... I hope you can work it out.

elle_nelson

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