How to claim $500K tax break after spouse dies
DEAR BENNY: My husband died this past August. We owned and lived in our house for more than 15 years, but now I want to sell. Am I eligible for the up-to-$500,000 exclusion of any profit that I will make? --Annie
DEAR ANNIE: According to the Internal Revenue Sesrvice, you may qualify to exclude up to $500,000 of gain, if you meet all of the following requirements:
the sale took place after 2008; you sell the house within two years after the date your spouse died; you have not remarried; you and your spouse met the ownership and use test at the time he died (this means that you both owned and lived in the house for two out of the previous five years prior to sale); and neither you nor your spouse excluded gain from the sale of another house during the last two years before the date of death.You can get more information from IRS Publication 523, entitled " Selling Your Home ," for use in preparing your 2010 federal tax return.
DEAR BENNY: My wife and I bought a house in 2009. We are divorcing and both want to sell the house. I am not sure if the house can be sold to cover the loan on the house. What happens to us if the house is sold for less than what we owe on the loan? --Joel
DEAR JOEL: You are referring to a short sale, where your mortgage lender allows you to sell the house at a price that is lower than what you owe. Much depends on the terms and conditions that the lender imposes when it gives you permission to sell.
If the lender will permit the sale without conditions, then more power to you and your wife. Of course, she will have to cooperate with the sale, and both of you will have to sign any documents required by the lender.
On the other hand, should your lender require that a certain sum be paid over and above the sales price, this is something that you and your wife (via your respective divorce attorneys) will have to work out.
Have you given any thought to holding the property as a rental investment? There are taxable consequences (good and bad) you should discuss with your attorneys, but it is an option you might want to consider.
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What happens to my 2nd home loan home equity bank loan in a ...
I am now underneath marked down sale record in CA. My initial has concluded to a conditions though my second, that is a non-purchase income loan, is requiring me to pointer a promissory note during a marked down balance. The second has concluded to revoke my change by 65% as well as on credit seductiveness giveaway over twenty years. Should we sign? we hold a pick to not signing is a foreclosure instituted by a first. Need assistance fast. Thanks for reading.
If hold a laws have been similiar here in Minnesota.
The second debt doesn’t go divided in foreclosure. The initial debt takes a skill behind in sell they will not come after we in foreclosure. If we have an event to pointer a promissory note during a ignored rate we hold this would be a great solution. we would deliberate with a Real Estate profession to endorse a law. Ask them what happens to a second in Foreclosure. Make certain which a second can still come after you! That will have your preference easy.
Good Luck!
If we have a stipulate to squeeze in a reduced sale as well as we do not determine with a second garnishment hilt we can suggest $ 5,000.00 to them as sum compensate off from a offering squeeze cost stipulate if a initial garnishment hilt additionally agrees.Most of a time a buyers stipulate is refused as well as it still goes in to foreclosure since a second garnishment hilt will not accept a $ 5,000.00.
These have been the little probable options. This is not an downright listing.
1. SIgn off upon the understanding the second lienholder is offering. Be certain we have the counsel examination the deal. You will be entering in to an eccentric contract, as well as we can be sued if we destroy to have the payments upon this apart deal.
2. Sell the home to the intensity customer theme to the 2nd lien. The customer gets the home as is, encumbered by the 2nd mortgage. (Buyer substantially will not wish to do this.)
3. Let the home go in to foreclosure. The 2nd lienholder will afterwards have the choice of suing we for the superfluous balance, given it is the non-purchase income mortgage. Whether they will sue or not is the opposite question. My theory is which they will sell the debt to the debt pick up agency, as well as the debt pick up group will come to terms the understanding identical to the 65% understanding now being offered.