I’m not sure if the title is properly stating what I’m trying to say. Basically I caught the butt end of a conversation someone was having at the dinner table during my cruise to Puerto Rico. They were mentioning that their new job required them to move and that the government was taking care of some expenses. I believe they also mentioned something along the lines of capital gains.
This topic interests me greatly if it does have some merit…or if there are some advantages that can be made use of due to the fact I may be facing a similar situation.
Sorry if this makes no sense and the person was fulla it…or that I just misinterpreted the whole thing.’
Ryan
As for the government taking care of expenses, well maybe this person is a government employee and they are reimbursing this person for moving expenses.
Capital gains: You do not have to pay capital gains tax up to $250,000 per individual. That’s $500,000 for a married couple on a properties appreciation when you sell if it has been your primary residence at least 2 out of the previous 5 years. I hope I wrote that clearly. Anyway, that is my understanding.
You can claim any “unreimbursed moving expenses” on Form 3903…see the form and the instructions.
http://www.irs.gov/pub/irs-pdf/f3903.pdf
Additionally, if you own your own residence and have owned and lived in it for 2 of the last 5 years, you can exclude up to $250K of capital gains ($500K for married filing joint). If you have owned the property less than 2 years and meet the other requirements (distance test, etc.) you may be eligible for a partial exclusion…
For instance, I have only owned this residence for about 20 or 22 months. If I move for work to, say Dallas, I can take an exlucsion for a reduced amount but it will still cover my capital gains…
This is probably what they were talking about…
See:
http://www.irs.gov/publications/p523/ar02.html#d0e1908, go to the area “Excluding the Gain”
Hope this helps…
Keith