Pacun Posted March 27 Report Share Posted March 27 Married US citizens went to live in Spain 10 years ago and left a house in the care of their three children. Children lived there and maintained it and paid house taxes yearly. Cost of home, $400K sold for $1,200,000. Improvements $100K. So profit was $700K. Their income is only about $10K each in SS. Any breaks on the profits of the house? Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 29 Author Report Share Posted March 29 It is interesting to see that if you have profit on a house and you stablish residency on another state where there is no capital gain taxes, you can save about 100K in a million dollars capital gains. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 29 Report Share Posted March 29 The state where the house is located will want their taxes, too! 1 Quote Link to comment Share on other sites More sharing options...
Sara EA Posted March 30 Report Share Posted March 30 To get the exclusion, the instructions clearly state that each spouse must meet the residency requirement. It says nothing about children living there. Looks like your clients will have to pay cap gains tax but, hey, they made A LOT of money on the sale. Don't forget to add selling expenses to their basis. I bet the realtor commission was enormous. 2 Quote Link to comment Share on other sites More sharing options...
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