What is the name of your state?AZ
In November 2004 my wife at the time and I put money down to build a new house. During the time it was being built we decided to separate and I agreed to move into the new house in November 2005. We paid 307K and financed about 291K of it in both our names. I am living there and my mom is paying me rent for one of the rooms since november. Well I am going to have to sell because it is too expensive for me. Good thing is I can probably sell for about $460K. My question is what will my tax penalty be if I sell and roll every dime after closing into a cheaper house. I know a 121 has exclusion rules, but I can not afford to take a huge hit in taxes. Also will my wife be responsible for half of the taxes? I talked to a 1031 exchange person and they said I could probably take part of a 1031 since my mom has been paying rent. Just need some advice to get started. Thanks.
BTW my wife is still living in our old house which has about 200K in equity so I feel I am getting the short end of the stick.
In November 2004 my wife at the time and I put money down to build a new house. During the time it was being built we decided to separate and I agreed to move into the new house in November 2005. We paid 307K and financed about 291K of it in both our names. I am living there and my mom is paying me rent for one of the rooms since november. Well I am going to have to sell because it is too expensive for me. Good thing is I can probably sell for about $460K. My question is what will my tax penalty be if I sell and roll every dime after closing into a cheaper house. I know a 121 has exclusion rules, but I can not afford to take a huge hit in taxes. Also will my wife be responsible for half of the taxes? I talked to a 1031 exchange person and they said I could probably take part of a 1031 since my mom has been paying rent. Just need some advice to get started. Thanks.
BTW my wife is still living in our old house which has about 200K in equity so I feel I am getting the short end of the stick.