Are we exempt due to unforeseen circumstances?
My Husband and I were discharged from a Chapter 7 BK in June 2003,My Husband had to close his business,and I lost my job of 12 years with a major airline that went under and have been out of work for more than a year.We Plan on selling our home in 2004,which we can no longer afford.We purchased for $160k Dec.20,00 and the current value is $357k.We hope to make 150k profit.I heard there was a new law in 2003,due to unforeseen circumstances we might be exempt from capital gains is that true?
1 Answer from Attorneys
Re: Are we exempt due to unforeseen circumstances?
I am assuming that you have lived in and owned the property for at least 2 years. That being the case, you have a $500K exemption from capital gains. Based on the numbers that you gave, you will have no recognizable capital gains tax from the sale of your home.