An ever-increasing phenomenon. People trying desperately to sell their former residence and it stays on the market for years because the owner will not sell at the ridiculously low values which come with today's economy.
Please focus on the "for years" in the above paragraph.
This means the status of actually living in the home for 24 months of the last 60 can be in jeopardy. And each month below 24 decreases the exemption.
And to stagnate their strategy even further: These people have been assured by TV press, politicians, and their local barber that they don't have to pay on gains when they sell their homes. They are shocked when they learn the truth to the extent that some of them actually will find a preparer because they "know" they don't have to pay on these gains. After all, they heard this on TV. Worse still, after not selling, some of them have converted to rental property "until the economy gets better." The economy has not really brought viable selling prices now in several years.
I am asking readers for effective strategies to lower (or perhaps eliminate) the sting of the two-year qualifier. Feel free to comment. Clients with properties in high-cost housing areas are the most vulnerable. (Had one this evening who has been trying to sell an "average" house in Long Island. Paid $34K in 1970, worth a half-million before this recession. Property taxes now $13K per year)
Please focus on the "for years" in the above paragraph.
This means the status of actually living in the home for 24 months of the last 60 can be in jeopardy. And each month below 24 decreases the exemption.
And to stagnate their strategy even further: These people have been assured by TV press, politicians, and their local barber that they don't have to pay on gains when they sell their homes. They are shocked when they learn the truth to the extent that some of them actually will find a preparer because they "know" they don't have to pay on these gains. After all, they heard this on TV. Worse still, after not selling, some of them have converted to rental property "until the economy gets better." The economy has not really brought viable selling prices now in several years.
I am asking readers for effective strategies to lower (or perhaps eliminate) the sting of the two-year qualifier. Feel free to comment. Clients with properties in high-cost housing areas are the most vulnerable. (Had one this evening who has been trying to sell an "average" house in Long Island. Paid $34K in 1970, worth a half-million before this recession. Property taxes now $13K per year)