AboutHelen P. O`Planick, EA Expertise I am a tax professional, with experience in individual taxation. I would prefer not to answer questions about non-resident aliens or corporate taxation. Please do not ask me state related questions, unless the state is Pennsylvania. There are 42 taxing states and 42 TOTALLY different sets of state tax law.
Experience I have been preparing tax returns almost all my life. I have been in professional practice for 25 years and I am enrolled to practice before the Internal Revenue Service.
Organizations National Association of Enrolled Agents
Publications I am a prior Money Magazine Tax Test taker and have been quoted extensively in all media including monthly periodicals and books by tax authorities.
Question QUESTION: We are in the process of selling our shore home and will
have capitol gain of about $550,000. We were told that at
age 55 we would be entitled to a one-time capitol gain tax
exemption. My husband turns 55 in December. Is this an option? Thanks for your help.
ANSWER: Was this a rental property or a personal residence?
Helen, EA in PA
---------- FOLLOW-UP ----------
QUESTION: Hi,
This has been a rental property we've had for about 10 years.
Our primary home is in Pa.
Answer This home does not qualify for any exclusion. Therefore, you will owe tax on the sale (and it can be ordinary and capital - depending on the method of depreciation and other items) and it is also taxable to both PA and the state it is in (I'm assuming DE or NJ). You will get credit on taxes paid to the rental state on your PA return.
You can exclude the gain on your personal residence every two years. Age no long has anything to do with it.
If you need a referral to a PA tax professional, I know tons. Just let me know your city.
