Author Topic: Need advice!  (Read 4225 times)

0 Members and 1 Guest are viewing this topic.

Offline the.irvine

  • Yearning for 949 / 714
  • **
  • Thanks
  • -Given: 15
  • -Received: 27
  • Posts: 274
Need advice!
« 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.

Offline WTTCHMN

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 15
  • -Received: 331
  • Posts: 2074
Re: Need advice!
« Reply #1 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.

Offline eyephone

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 493
  • -Received: 776
  • Posts: 14375
Re: Need advice!
« Reply #2 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.


Offline the.irvine

  • Yearning for 949 / 714
  • **
  • Thanks
  • -Given: 15
  • -Received: 27
  • Posts: 274
Re: Need advice!
« Reply #3 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?

Offline irvinehomeowner

  • The Unicorn Hunter
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2661
  • -Received: 4017
  • Posts: 23074
  • 3CWG
Re: Need advice!
« Reply #4 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.
Once you go 3-car garage... your junk can never go back.
3CWG: 3-Car Wide Garage
FCB: Foreign Cash Buyer
I recommend:
www.irvinerealtorsite.com
member: Soylent Green Is People (loans/refis)

Offline eyephone

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 493
  • -Received: 776
  • Posts: 14375
Re: Need advice!
« Reply #5 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




Offline Perspective

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 119
  • -Received: 153
  • Posts: 2239
Re: Need advice!
« Reply #6 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%.

The following member(s) thanked this post:


Offline lnc

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 573
  • -Received: 1064
  • Posts: 3173
Re: Need advice!
« Reply #7 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. 


Offline OC_relocation

  • Tourist
  • *
  • Thanks
  • -Given: 9
  • -Received: 13
  • Posts: 81
Re: Need advice!
« Reply #8 on: May 07, 2016, 09:52:33 PM »
cost of selling could be high depending on commission and fee etc

Offline Ready2Downsize

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 15
  • -Received: 197
  • Posts: 1478
Re: Need advice!
« Reply #9 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.

Offline ps9

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 464
  • -Received: 1194
  • Posts: 7336
Re: Need advice!
« Reply #10 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.

 

Talk Irvine Links

[Recent Posts]
[FAQ / Rules]

Site Supporters


Recent Posts

Re: How soon until Bitcoin crashes? by fatduck
[Yesterday at 11:24:14 PM]


Re: coronavirus by morekaos
[Yesterday at 10:38:23 PM]


Re: How soon until Bitcoin crashes? by morekaos
[Yesterday at 09:15:16 PM]


Re: How soon until Bitcoin crashes? by Liar Loan
[Yesterday at 09:03:57 PM]


Re: coronavirus by morekaos
[Yesterday at 08:35:18 PM]

SimplePortal 2.3.7 © 2008-2021, SimplePortal