Talk Irvine

General => Real Estate => Irvine Real Estate => Topic started by: the.irvine on May 03, 2016, 08:56:20 PM

Title: Need advice!
Post by: the.irvine on May 03, 2016, 08:56:20 PM
Dear TI Members,

We have special need son who is attending CV elem school, due to excessive class size they will be moving our son to PS elem school from next school year. We really dont want to move our son from CV elem school for various reasons. Need your help please

I am requesting to school to keep him there, but so far no luck.

We bought condo in PS ( <2 years ago): I believe if we sell it prior to 2 years , will have to pay cap gain taxes if any. I am also thinking about renting it out, and going to CV for rental condo( or buy new one).

I am very confused, please help me.
Title: Re: Need advice!
Post by: WTTCHMN on May 03, 2016, 09:05:28 PM
Dear TI Members,

We have special need son who is attending CV elem school, due to excessive class size they will be moving our son to PS elem school from next school year. We really dont want to move our son from CV elem school for various reasons. Need your help please

I am requesting to school to keep him there, but so far no luck.

We bought condo in PS ( <2 years ago): I believe if we sell it prior to 2 years , will have to pay cap gain taxes if any. I am also thinking about renting it out, and going to CV for rental condo( or buy new one).

I am very confused, please help me.

You don't sound so confused.  You know exactly what to do.
Title: Re: Need advice!
Post by: eyephone on May 03, 2016, 09:09:09 PM
You have to live there more than 2 years, and when you sell the gains up to $250k/$500k (depending on your filing status) profit is tax free.

You also must live in that principal residence for 2 of the 5 years before you sell the place.

http://www.nolo.com/legal-encyclopedia/the-250000500000-home-sale-tax-exclusion.html


I hope the best for you and your family.

Title: Re: Need advice!
Post by: the.irvine on May 03, 2016, 09:20:53 PM
Thank you!

are there any tax implications or penalties, if we put our condo in PS on rent, and use this cash to lease an apartment in CV?
Title: Re: Need advice!
Post by: irvinehomeowner on May 04, 2016, 06:32:29 AM
Instead of uprooting your real estate, to what extent have you talked to the school?

Considering your son is special needs, I would think that the school may make an exception.

If you've already spoken to the principal, keep going up the chain.

Good luck.
Title: Re: Need advice!
Post by: eyephone on May 04, 2016, 06:40:17 AM
Thank you!

are there any tax implications or penalties, if we put our condo in PS on rent, and use this cash to lease an apartment in CV?

You have to pay taxes on the rental income on your house.

https://turbotax.intuit.com/tax-tools/tax-tips/Rental-Property/Real-Estate-Tax-and-Rental-Property/INF12039.html

https://www.irs.gov/taxtopics/tc414.html



Title: Re: Need advice!
Post by: Perspective on May 04, 2016, 08:49:21 AM
Don't let the tax tail wag the dog. How much of a gain are you expecting after commissions? Unless your married income is above ~$450K, the capital gain tax will be 15%.
Title: Re: Need advice!
Post by: lnc on May 04, 2016, 09:21:49 AM
To OP, can you elaborate a little why you prefer CV Elementary  over PS Elementary?  I live in CV and interested to know how's CV Elementary school is doing. 

Also for the over crowding issue, is it a school wide problem or just limited to the special Ed?  If it's a school wide issue then it might just be a temporary problem.  Once the EW and BP Elementary open, they should ease the crowding issue. 

Title: Re: Need advice!
Post by: OC_relocation on May 07, 2016, 09:52:33 PM
cost of selling could be high depending on commission and fee etc
Title: Re: Need advice!
Post by: Ready2Downsize on May 08, 2016, 06:43:57 AM
Dear TI Members,

We have special need son who is attending CV elem school, due to excessive class size they will be moving our son to PS elem school from next school year. We really dont want to move our son from CV elem school for various reasons. Need your help please

I am requesting to school to keep him there, but so far no luck.

We bought condo in PS ( <2 years ago): I believe if we sell it prior to 2 years , will have to pay cap gain taxes if any. I am also thinking about renting it out, and going to CV for rental condo( or buy new one).

I am very confused, please help me.

You don't sound so confused.  You know exactly what to do.

Add improvements that stay with the house to your basis and subtract your cost to sell (mostly commission) and you'll come up with your taxable gain. If you bought less than 2 years ago, there might not be a whole lot of gain (if any). Cap gains wouldn't amount to much.

Renting out your place would result in rental income. You can't take rent off against that, so you'll have to decide if cost to move (moving van, rent, etc) is high enough to offset your rent. Don't forget to include vacancy and maintenance on your rental.

Tough situation you're in. Have you spoken with the special ed teacher at PS? Maybe they have a good program.
Title: Re: Need advice!
Post by: ps9 on May 08, 2016, 07:06:29 AM
Must be doing something right at CV, the special Ed teacher got an IUSD award, Teachers of Promise.  Good luck, hope you get the best for your kid.
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