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Selling house to family member

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eblover

Junior Member
What is the name of your state? NYS

My father is buying my home from me and I am rolling the profits into building another home within the same township. What kind of paperwork do I need to have for tax purposes? I know how to file change of ownership forms with my county for property taxes, but I was wondering if I am responsible to pay taxes on the profits if I am rolling that $$ over to a new home. Any advice will be appreciated!
 


abezon

Senior Member
You can't avoid taxes by rolling profits from your personal home into a new home. That law was changed in 1997. Now, you can exclude from income up to $250,000 of profits from the sale of your home altogether, if you owned and lived in the home as your primary residence for 2 of the 5 years prior to sale. If you do not meet the 2 of 5 year test, you must pay taxes on all profits, unless you meet the exceptions for a reduced exclusion rate.

The only other issue might be gift tax return filing if you sell to dad at below market rates.
 

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